Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Cowen and Company 11th Annual Global Transportation Conference (September 2018)
10 slides from Delta Air Lines's conference presentation, Sep 5, 2018
Slide 1: Delta: Built to Last
Delta: Built to Last Cowen and Company 11 th Annual Global Transportation Conference September 5, 2018
Slide 2: Safe Harbor
Safe Harbor Statements in this presentation that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections o r strategies for the future, may be "forward - looking statements" as defined in the Private Securities Litigation Reform Act of 1
Slide 3: Delta has the Right Combination of Strategic Advantages
Delta has the Right Combination of Strategic Advantages 2 Domestic Network Customer Loyalty Investment Grade Balance Sheet Best connecting hub complex – including the world’s most efficient hub in Atlanta – enhanced by investments in New York, LA and Seattle Solid foundation with lower interest expe
Slide 4: Delta Delivers Again in 2017
Delta Delivers Again in 2017 3 Running a reliable, customer - focused airline is producing strong profits and cash flows that are sustainable through the business cycle Balanced capital allocation allows for investment in the future, a stronger financial foundation, and consistent shareholder return
Slide 5: Delta Delivers Again in 2017: Consistently Producing Solid Results
Delta Delivers Again in 2017 4 Consistently Producing Solid Results Running a reliable, customer - focused airline is producing strong profits and cash flows, allowing for improved balance sheet strength and increased return of capital to shareholders Expect 2018 will be 4 th year with over $5B in p
Slide 6: Margins Stabilizing in Second Half of 2018
Margins Stabilizing in Second Half of 2018 (1.8%) (2.3%) 2017 1H18 3Q18E 4Q18E 5 • Reaffirming earnings per share guidance of $1.65 to $1.85 for the September quarter • Top - line growth up 8% year - to - date as fuel recapture and commercial initiatives gain momentum • Cost trajectory improving in
Slide 7: Investments in Customer Experience and Operational Reliability Driving Diversified Revenue Premium
Investments in Customer Experience and Operational Reliability Driving Diversified Revenue Premium • Delta’s strong customer focus combined with investments in our fleet, network, product, and airline partners have driven revenue diversity and a significant, sustainable revenue premium to the indust
Slide 8: Driving Efficiency to Address Non-Fuel Cost Growth
Driving Efficiency to Address Non - Fuel Cost Growth • With fuel pressuring margins, managing controllable costs is more important than ever • Second half 2018 non - fuel unit cost growth expected to be 3 to 4 points better than first - half performance − Lapping overhead pressures including depreci
Slide 9: Continuing Balanced Capital Allocation in 2018
Continuing Balanced Capital Allocation in 2018 8 Balancing cash flows between investment in business, balance sheet and shareholders Reinvest In The Business • Capital spending targets ~50% of operating cash flow • Replacing ~30 % of mainline fleet from 2017 - 2020, driving enhanced efficiency • Pro
Slide 10: Committed to Consistent Shareholder Returns
Committed to Consistent Shareholder Returns • Since 2013, Delta has returned more than $11 billion through dividends and share repurchases • 2018 marks 5 th consecutive annual dividend increase – Dividend yield ~2.4% at current stock price • Delta is a consistent purchaser of its stock – Since 2013,