Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Day (December 2019)
87 slides from Delta Air Lines's investor day presentation, Dec 12, 2019
Slide 1: Delta Investor Day 2019
Slide 2: Agenda
Agenda Ed Bastian Chief Executive Officer Delta: The Industry Leader Glen Hauenstein President Extending our Competitive Advantages Gil West Sr. EVP and Chief Operating Officer The World’s Best Run Airline Tim Mapes Chief Marketing and Communications Officer Reinforcing Brand Loyalty Eric Phillips S
Slide 3: Safe Harbor
Safe Harbor Statements in this presentation that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995
Slide 4: Delta: The Industry Leader
Delta: The Industry Leader Ed Bastian Chief Executive Officer
Slide 5: Delivering Strong 2019 Performance
Delivering Strong 2019 Performance Our People Our Customers ✓ Strong culture and employee engagement ✓ Industry-leading reliability and record ✓ On track for highest profit sharing in history customer satisfaction ✓ 6,800 new hires to support growth ✓ Enhancing the customer experience and improve se
Slide 6: Continued Momentum in 2020
Continued Momentum in 2020 Revenue Earnings Per Share Free Cash Flow ~$49B ~$47B $6.75-$7.75 ~$4B ~$4B $6.75-$7.25 4% - 6% ~7% 2019 2020 2019 2020 2019 2020 Guidance Outlook Guidance Outlook Guidance Outlook Note: Adjusted for special items; non-GAAP financial measures reconciled in Appendix 6
Slide 7: Feedback We Hear From the Investment Community
Feedback We Hear From the Investment Community “ Delta’s biggest weakness is that it’s an airline company – there are a lot of fears around margins, cyclicality and exposure to macroeconomic or ” geopolitical shocks. Top owner Note: Rivel perception study conducted in July 2019 7
Slide 8: Attractive Industry Dynamics
Attractive Industry Dynamics Delta is Leading a Growth Sector… …in a Stronger Airline Industry Average 2017 - 2019 ✓ Consolidated structure ✓ Returns-oriented with shareholder focus ✓ Differentiated and improved product ✓ Consistent profitability ✓ Addressing environmental impact GDP Travel Delta Re
Slide 9: Feedback We Hear From the Investment Community
Feedback We Hear From the Investment Community “ One way Delta could improve their valuation and change the way that the market sees them would be to improve the level of disclosures on profitability of the various business lines. ” Sell Side Analyst “ Delta’s premium to the industry and their outpe
Slide 10: Delta's Strategic Priorities
Delta’s Strategic Priorities Run the Premier Grow our Brand Accelerate Invest for the Global Airline Premium Globalization Long Term Safe, reliable and Enhance customer Grow our presence Extend our competitive customer-focused trust and loyalty advantages Delivered by the best people and culture in
Slide 11: Five Things to Take Away From Today
Five Things to Take Away From Today Building on a record 2019 – with expectations for 4% to 6% revenue growth, $6.75 to 1 $7.75 earnings per share and $4 billion free cash flow in 2020 Benefitting from favorable travel trends as the best performer within a structurally 2 improved airline industry Ex
Slide 12: Extending our Competitive Advantages
Extending our Competitive Advantages Glen Hauenstein President
Slide 13: Leveraging scale
Agenda Leveraging scale Investing for the future Extending our competitive advantages 13
Slide 14: Post-Merger Network Provided Limited Global Reach
Post-Merger Network Provided Limited Global Reach AMS DTW JFK CDG NRT MSP SLC MEM CVG ATL Destinations: 549 Countries: 113 Joint Venture in transatlantic Note: Route map as of 2008 14
Slide 15: Unprecedented Network Transformation Creates Global Scale
Unprecedented Network Transformation Creates Global Scale LHR AMS YVR YYC YYZ CDG SEA BOS ICN MSP FCO SLC DTW NYC LAX ATL PVG MEX BOG LIM GRU EZE SCL SYD Destinations: 549 982 Countries: 113 143 Existing or planned Joint Ventures in all geographic entities Note: Route map as of December 2019; WestJe
Slide 16: Leveraging scale
Agenda Leveraging scale Investing for the future Extending our competitive advantages 16
Slide 17: Global Scale Creates Opportunities to Invest for the Future
Global Scale Creates Opportunities to Invest for the Future JV / Equity Fleet Airports Technology Partnerships Transformation Deepening customer, Investing in key Building digital tools, Simplifying and commercial and airports to improve driving personalization, upgauging fleet to drive operational
Slide 18: Leveraging scale
Agenda Leveraging scale Investing for the future Extending our competitive advantages 18
Slide 19: Extending our Competitive Advantages
Extending our Competitive Advantages Unmatched Competitive Unmatched Competitive Advantages Advantages Culture Global Network Customer Loyalty Global Global Customer Customer Network Culture Network Loyalty Loyalty Operational Balance Reliability Sheet Operational Balance Reliability Sheet 19
Slide 20: Scale Advantage Enables Attractive Growth Opportunities
GLOBAL NETWORK Scale Advantage Enables Attractive Growth Opportunities Strengths 2020 Vision High-margin core hubs, Core hub growth, mature Most efficient core hubs, Domestic coastal hub positions, coastal hubs, capitalize on higher-margin coastal hubs, strong local share local positions expanded fo
Slide 21: Delta's Fleet Transformation is Multi-Faceted
GLOBAL NETWORK Delta’s Fleet Transformation is Multi-Faceted Cabin Segmentation • Provide choice and optimize revenue Creating Value Aircraft Deployment from • Drive efficiency through better asset deployment Existing Fleet Interior Investments • Improve customer experience Fleet Simplification • Re
Slide 22: Continuing to Renew Our Fleet
GLOBAL NETWORK Continuing to Renew Our Fleet Evolution of Delta’s Fleet Gauge (average seats per aircraft) 150+ • Average gauge has grown 30% since 2009 • Gauge growth temporarily pauses in 2020/2021, returning in 2022 and continuing for 127 foreseeable future • Next phase of fleet transformation dr
Slide 23: Growing Loyalty and Trust in the Delta Brand
C U S T O M E R L O YA LT Y Growing Loyalty and Trust in the Delta Brand Strengths 2020 Vision Top-ranked loyalty SkyMiles Increase engagement and Deeper customer relationships program with expanding Program enhance targeted offerings with greater lifetime value membership base Miles as Loyalty curr
Slide 24: The Strategic Importance of American Express
C U S T O M E R L O YA LT Y The Strategic Importance of American Express Delta-American Express Contribution • Two strong consumer brands with long-term partnership ~$7B • Integrated model with attractive economics • Higher contribution driven by improved economics, accelerating acquisitions and str
Slide 25: The Delta Difference
IN SUMMARY The Delta Difference A Powerful Unmatched Competitive Long-Term Brand Advantages Value Creation Global Customer Culture Network Loyalty Top-Line Growth + Margin Expansion Balanced Capital Operational Balance Reliability Sheet Allocation 25
Slide 26: The World's Best Run Airline
The World’s Best Run Airline Gil West Sr. EVP and Chief Operating Officer
Slide 27: Agenda
Agenda Improving operational reliability Growing portfolio businesses 27
Slide 28: Building Trust with Customers Through Operational Reliability
Building Trust with Customers Through Operational Reliability Lowest Level of Record Best More Customers Record Maintenance Customer Completion Arrive On Time Bag Cancellations in Satisfaction Factor Performance History Scores 99.8% 85.5% 1.2x 99% 51% +5 pts YOY DOT Completion On-Time Fewer lost bag
Slide 29: Managing Irregular Operations to Further Differentiate Customer Service
Managing Irregular Operations to Further Differentiate Customer Service Irregular Operations (IROP) IROP Net Promoter Cancellations Scores (Mainline) • Best-in-class operational performance on blue-sky days 5,719 • IROPs provide an opportunity to 8% differentiate versus competition 3% • Delivering o
Slide 30: 2020 Operational Priorities
2020 Operational Priorities Continue to Improve Leverage Technology & Grow Portfolio IROP Recovery & Process Infrastructure Businesses Improvement • Facilitate quicker recovery • Enable personalized service • Continue to grow MRO revenue through predictive tools through “Single View of the • Expand
Slide 31: Agenda
Agenda Improving operational reliability Growing portfolio businesses 31
Slide 32: Unlocking Value from Portfolio Businesses Through Partnerships
Unlocking Value from Portfolio Businesses Through Partnerships • DPJ combining with Wheels Up to create one of the world’s largest owned and managed fleets of private aircraft - Brings together complementary businesses representing best consumer brands in private and commercial aviation - Delta ente
Slide 33: Pursuing Growth Opportunities in Core Competencies
Pursuing Growth Opportunities in Core Competencies • Manufacturing subsidiary established to create value for Delta in the cabin interior − Focus on supplier risk mitigation, Delta brand attributes and cost leverage − Currently producing wireless IFE systems, monuments and integration kits • Capabil
Slide 34: MRO Positioned to Meet Growing Global Maintenance Demand
MRO Positioned to Meet Growing Global Maintenance Demand Demand Growing for New Engine Offerings Global Installed Engine Forecast 2019-2029 • Largest airline MRO in America with long-term OEM relationships • Guarantees for 7,000+ engine shop visits over the next 30 years +20% CAGR • Contracts with R
Slide 35: Delta: The World's Best Run Airline
IN SUMMARY Delta: The World’s Best Run Airline Operational Excellence − Building trust with customers through industry-leading operational reliability Continuous Improvement − Improving performance during irregular operations to minimize disruption and improve customer experience Unique Value Driver
Slide 36: Reinforcing Brand Loyalty
Reinforcing Brand Loyalty Tim Mapes Chief Marketing and Communications Officer
Slide 37: Delta Has a Leading Consumer Brand that Transcends Travel
Delta Has a Leading Consumer Brand that Transcends Travel Corporate Partner Award 37
Slide 38: A Culture of Service at the Center of Everything We Do
A Culture of Service at the Center of Everything We Do The Rules of The Road Apply our basic business principles Know our business and improve it constantly Demonstrate honesty, integrity and respect Drive for results Build great teams 38
Slide 39: Committed to Industry-Leading Safety and Reliability
Committed to Industry-Leading Safety and Reliability 39
Slide 40: Never Satisfied With the Status Quo
Never Satisfied With the Status Quo Modernizing the airport experience • Terminal investments, biometrics, RFID expansion Enhancing service • Single View of the Customer enables more personalized experiences Extending global relevance • Building portfolio of industry-leading brands • Deeper partner
Slide 41: Values-Led and a Force for Positive Change Worldwide
Values-Led and a Force for Positive Change Worldwide Better connecting global communities starts with thousands of Delta people who connect millions of passengers to hundreds of global destinations — every day But that’s just the start, the heart of our business is about… – Connecting people with ea
Slide 42: Delta is Addressing Climate Change
Delta is Addressing Climate Change Fleet Renewal Fuel Savings Initiatives Carbon Offsets ✓ More than 300 new ✓ APU usage reductions ✓ Purchasing from 20+ projects aircraft in last 5 years ✓ New aircraft are 25% ✓ Turbulence app reduces ✓ Investing in carbon reductions more fuel efficient flight corr
Slide 43: Trust Drives Key Behaviors Including Buying and Staying Loyal
Trust Drives Key Behaviors Including Buying and Staying Loyal Percent Who Will Engage in Each Behavior on Behalf of a Brand Brands you currently use and… Do not fully trust Have trusted for a long time Buy First Stay Loyal Advocate Defend 62 53 +33 51 points +28 +27 43 points points +21 points 29 25
Slide 44: Better Business Results Driven by Best-in-Class Customer Experience
Better Business Results Driven by Best-in-Class Customer Experience Domestic NPS & Revenue Premium 119% Strong relationship 117% 51% observed between 38% NPS and Revenue Premium 106% 15% 2010 2015 2019 YTD 3Q19 Domestic Revenue Premium Domestic NPS Note: NPS sourced from Domestic ISM Surveys; 2019 P
Slide 45: Delta's Brand is Built on Trust and Delivering What Customers Value
Delta’s Brand is Built on Trust and Delivering What Customers Value 1 Thoughtful 2 Reliable 3 Innovative 4 Values-Led Always have our Understanding Never satisfied with the Determined to make the customers, employees, expectations is the status quo, we world better and more communities and standard
Slide 46: Industry-Leading Revenue Generation
Industry-Leading Revenue Generation Eric Phillips Sr. Vice President Revenue Management
Slide 47: Delta is the Airline of Choice
Delta is the Airline of Choice Leading Global Best-in-class Growing customer Network + Experience preference and sustainable revenue premium More customers than ever are choosing to fly Delta, recommending the airline and becoming loyal to our brand… 47
Slide 48: Evolution to Customer-Focused Revenue Generation
Evolution to Customer-Focused Revenue Generation Then Now Vision Deep knowledge of Brand loyalty Transactional Relationship-based customer preferences Products Seats Experiences Personalized offers Reliability, service and Best-in-class Purchase driver Lowest fares products travel experience Domesti
Slide 49: Positioned to Continue Revenue Momentum in 2020
Positioned to Continue Revenue Momentum in 2020 ~$49B 4-6% +4-6% ~7% • More choice in payment 8% • 110%+ revenue • More choice in premium $39B 4% experience • Amex renewal • Reliable operation • Fuel recapture • Branded Fares • Premium revenue • Globalization growth 2016 2017 2018 2019E 2020E Revenu
Slide 50: Executing on 2020 Revenue Drivers Will Further Brand Affinity
Executing on 2020 Revenue Drivers Will Further Brand Affinity Building Better Selling Preferred Loyalty 1 2 3 4 Customer Trust and Servicing Corporate Carrier Revenue Delivering sustainable Offering right product Maintaining our lead by Driving acquisitions and growth by earning and at the right tim
Slide 51: Building Customer Trust Throughout the Travel Ribbon
I N I T I AT I V E # 1 : B U I L D I N G C U S T O M E R T R U S T Building Customer Trust Throughout the Travel Ribbon Shopping Booking Post-Purchase Airport In-Flight Fairness in Consistency Clarity of Safe, policy for Transparency in pricing, choices and reliable, customers in all customer produc
Slide 52: Brand Affinity + Product Affinity is a Powerful Combination
I N I T I AT I V E # 2 : B E T T E R S E L L I N G A N D S E RV I C E Brand Affinity + Product Affinity is a Powerful Combination Customers Want Choice Growing Premium Revenue +25% ~$15B $12B 70% repeat $5.5B 2010 2017 2019E Once a customer purchases a premium product, 2017-2019E 70% of those custom
Slide 53: Better Selling and Servicing Fortify Delta's Leading Position
I N I T I AT I V E # 2 : B E T T E R S E L L I N G A N D S E RV I C E Better Selling and Servicing Fortify Delta’s Leading Position Strong Direct Channels 52% 42% direct of direct revenue distribution is premium Opportunity to Expand 10% 81% in Corporate Direct accounts with accounts with a Booking
Slide 54: Delta is the Preferred Carrier for Business Travel
I N I T I AT I V E # 3 : P R E F E R R E D C O R P O R AT E C A R R I E R Delta is the Preferred Carrier for Business Travel 80%+ +17% Global Focus Travel Programs YoY Premium with Delta as Preferred Carrier Volume 2019 Yo2Y Industry Corporate Revenue in Delta Markets Domestic: Growing Corporate 10%
Slide 55: Amex Partnership Creates Value for Delta and Our Customers
I N I T I AT I V E # 4 : L O YA LT Y R E V E N U E Amex Partnership Creates Value for Delta and Our Customers Delta-Amex Contribution New and improved co-brand ~15% card benefits and refreshed marketing CAGR will accelerate acquisitions and drive ~$4.4B portfolio spend ~$4B 1M+ 12%+ $3.4B New card P
Slide 56: Strong Foundation with Durable Platform for Growth
Strong Foundation with Durable Platform for Growth Scale Local Share Corporate Strong global presence, Local share is growing, Continued strength in geographically balanced ~20% yield premium over corporate volumes with network connecting traffic higher premium mix #1 carrier in revenue ~60% domesti
Slide 57: Best-in-Class Customer Experience = Sustained Revenue Growth
IN SUMMARY Best-in-Class Customer Experience = Sustained Revenue Growth Trusted Brand We have the right… ✓ Culture ✓ Technology 2020 ✓ Employees ✓ Loyalty program Top-line Growth 4% to 6% ✓ Network & Fleet ✓ Global partners ✓ Operational reliability ✓ Products & Services …for future success 57
Slide 58: People Fuel our Success
People Fuel our Success Joanne Smith Chief People Officer
Slide 59: Our Culture in Action
Our Culture in Action Our People: Caring for our people, sustaining their passion Empowered Our Employees Our Brand: Customers: Caring for our Strengthening brand, customers, who customer loyalty, become passionate higher NPS about Delta 59
Slide 60: Creating Moments That Matter Every Day
Creating Moments That Matter Every Day 60
Slide 61: Care When It's Needed Most
Care When It’s Needed Most “The decision to help was, without a doubt, who we are as a company that cares about connecting the world. In this case, we were able to connect hundreds of people to safety and humanity. Our team’s commitment to helping others continues to inspire me every day.” Dave Holt
Slide 62: A Culture of Giving Back
A Culture of Giving Back 273 30 30 Habitat Homes Playgrounds JA Chapters Delta employees build homes Delta employees have built KaBOOM! Delta supports Junior Achievement annually – spanning 13 countries playgrounds across 14 markets to give chapters across 4 continents to teach since 1995 – with Hab
Slide 63: A Thriving Culture Strengthens Customer Loyalty
IN SUMMARY A Thriving Culture Strengthens Customer Loyalty More likely to have highly 13X engaged employees More likely to have employees 7X innovating More likely to have higher Net 6X Promoter Scores Source: O.C. Tanner Global Culture Report 2020 63
Slide 64: Delivering Consistent Value for Shareholders
Delivering Consistent Value for Shareholders Paul Jacobson Chief Financial Officer
Slide 65: Agenda
Agenda Financial highlights and outlook Capital allocation 65
Slide 66: Strong 2019 Financial Performance Caps Decade of Transformation
Strong 2019 Financial Performance Caps Decade of Transformation Pre-Tax Operating Returns to Profit Cash Flow Shareholders ~$6B ~$8.5B $5.3B ~$3B $6.8B $2.4B $2.8B $1.5B $0B 2010 2017 2019E 2010 2017 2019E 2010 2017 2019E Consistent Targeting ~70% Fifth consecutive year reinvestment and of FCF to ow
Slide 67: Robust Free Cash Flow Generation in 2019
Robust Free Cash Flow Generation in 2019 Core Capital • Expect free cash flow to Spending net income conversion of Operating Cash ~$4.5B 80% to 90% Flow ~$8.5B • Additional $500 million Free Cash Flow elective pension ~$4B contribution in the December quarter $2B $1B Buybacks Dividends Note: Adjuste
Slide 68: Continued Momentum in 2020
Continued Momentum in 2020 Revenue Earnings Per Share Free Cash Flow ~$49B ~$47B $6.75-$7.75 ~$4B ~$4B $6.75-$7.25 4% - 6% ~7% 2019 2020 2019 2020 2019 2020 Guidance Outlook Guidance Outlook Guidance Outlook Note: Adjusted for special items; non-GAAP financial measures reconciled in Appendix 68
Slide 69: Total Expense Growth in 2020 Expected to be Slightly Lower than 2019
Total Expense Growth in 2020 Expected to be Slightly Lower than 2019 Key Assumptions • Approximately 2% fuel efficiency Non-Fuel Expense Fuel ~ Flat improvement Price per gallon • Higher volume • Pension favorability Non- due to strong asset returns and cash Operating contributions in 2019 Industry
Slide 70: Consistently Delivering Solid Financial Results
Consistently Delivering Solid Financial Results Industry-leading Transformational decade has resulted in consistent financial 1 performance performance that leads the industry Exceeding Exceeding initial 2019 financial targets including top-line growth, 2 2019 objectives margin expansion and strong
Slide 71: Agenda
Agenda Financial highlights and outlook Capital allocation 71
Slide 72: Balanced Cash Deployment Over the Last Decade
Balanced Cash Deployment Over the Last Decade 2010 to 2019 Cumulative Operating Cash Flow $64 billion Business Investment Shareholder Returns Balance Sheet Core capex, airport, strategic Share repurchases, dividends Debt reduction, pension funding ~50% ~20% ~30% Note: All metrics calculated over 201
Slide 73: Balanced Capital Allocation Priorities
Balanced Capital Allocation Priorities 1 Reinvest in the Business 2 Maintain Investment Grade Balance Sheet 3 Return Cash to Owners Renewing Delta’s fleet with Targeting adjusted debt to Consistently returning cash to more efficient next-generation EBITDAR range of 1.5x - shareholders, targeting 70%
Slide 74: Our Investments are Driving Strong Returns
1. REINVEST IN THE BUSINESS Our Investments are Driving Strong Returns ROIC and Invested Capital ~15% • Approximately 400 basis points of ROIC improvement on a $17 billion increase in ~11% ~$34B invested capital base since 2010 • Compounding benefits of reinvestment $17B support long-term growth 201
Slide 75: Reinvestment Consistent but Flexible
1. REINVEST IN THE BUSINESS Reinvestment Consistent but Flexible Core Capital Spending $4.6B ~$4.5B ~$4.5B • Core capex spend in 2020 similar to 2019 $3.7B $3.2B ‒ Expecting ~80 aircraft deliveries ‒ Cabin refurbishment and product upgrades ‒ Ground and facility investments ‒ Technology investments
Slide 76: Investment Grade Balance Sheet Provides Powerful Advantage
2 . M A I N TA I N I N V E S T M E N T G R A D E B A L A N C E S H E E T Investment Grade Balance Sheet Provides Powerful Advantage Adjusted Debt / EBITDAR BBB- Baa3 BBB- • Robust cash generation and strong balance sheet position Delta to: − Consistently reinvest in the business − Seize strategic op
Slide 77: Sustained Free Cash Flow Enables Consistent Shareholder Returns
3. RETURN CASH TO OWNERS Sustained Free Cash Flow Enables Consistent Shareholder Returns Free Cash Flow Free Cash Flow Allocation Targets ~$4B ~$4B $3.2B Dividends Balance 20% - 25% Sheet 30% $2.4B ~$4B of annual FCF Share Buybacks 45% - 50% Target 70% 2017 2018 2019E 2020E of FCF to owners Note: Ad
Slide 78: Dividend Demonstrates Our Confidence
3. RETURN CASH TO OWNERS Dividend Demonstrates Our Confidence Dividend per Share $1.61 • Dividend targeted at 20% to 25% $1.40 of Free Cash Flow $1.22 • Track record of annual increases with current yield of 2.9% $0.81 $0.54 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Dividend Run Rate $425M $600M $875M $950
Slide 79: Delta is a Compelling Long-Term Investment Opportunity
Delta is a Compelling Long-Term Investment Opportunity Powerful Brand Unmatched Strong Partner Proven Track Record With Industry- Competitive Portfolio and of Execution & Leading Returns Advantages Global Scale Reinvestment 79
Slide 80: Delta is a Compelling Long-Term Investment Opportunity
INVESTMENT THESIS Delta is a Compelling Long-Term Investment Opportunity Powerful Brand Unmatched Strong Partner Proven Track Record With Industry- Competitive Portfolio and of Execution & leading Returns Advantages Global Scale Reinvestment Record customer Engaged and Global relevance with
Slide 81: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Financial Measures The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate due to rounding. Delta sometimes uses information ("non-GAAP financial measures"
Slide 82: Non-GAAP Reconciliations
Non-GAAP Reconciliations Pre-Tax Income and Net Income, Adjusted We adjust pre-tax income and net income for the following items to determine pre-tax income and net income, adjusted for the reasons described below. We include the income tax effect of adjustments when presenting net income, adjusted.
Slide 83: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Revenue, Adjusted We adjust operating revenue for refinery sales to third parties to determine operating revenue, adjusted because refinery sales to third parties are not related to our airline segment. Operating revenue, adjusted therefore provide a more meaningfu
Slide 84: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Adjustments include: Net purchases (redemp
Slide 85: Non-GAAP Reconciliations
Non-GAAP Reconciliations Capital Expenditures, Net We present core capital spending which includes proceeds for sales of E190 aircraft because management believes investors should be informed that these proceeds effectively offset the cash paid for these aircraft earlier in the year. Management beli
Slide 86: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Cash Flow, Adjusted We present operating cash flow, adjusted because management believes adjusting for the following items provides a more meaningful measure for investors. We do not present reconciliations for the years ended December 31, 2019 (Projected) and Dece
Slide 87: Non-GAAP Reconciliations
Non-GAAP Reconciliations After-Tax Return on Invested Capital We present after-tax return on invested capital as management believes this metric is helpful to investors in assessing the company's ability to generate returns using its invested capital as a measure against the industry. Return on inve