Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — J.P. Morgan Industrials Conference 2022
14 slides from Delta Air Lines's conference presentation, Mar 15, 2022
Slide 1: Delta Air Lines J.P. Morgan Industrials Conference
DELTA AIR LINES J.P. MORGAN INDUSTRIALS CONFERENCE MARCH 15, 2022
Slide 2: Safe Harbor
Safe Harbor Statements made in this presentation that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered “forward-looking statements” under the Secu
Slide 3: Current State Of The Business – Demand Momentum Building
Current State Of The Business – Demand Momentum Building Total Adj. Revenue Recovery Versus 2019 ▪ Raising March quarter revenue outlook to ~78% Updated 1Q guidance: ~78% recovered versus 2019 ~83% ‒ Expect to achieve flat TRASM in March 80% month versus March 2019 74% ▪ System cash sales 1 are abov
Slide 4: Operational Excellence And Customer Focus Drive NPS Gains
Operational Excellence And Customer Focus Drive NPS Gains On Time Arrival By Airline 1 Delta Domestic Net Promoter Score YTD as of March 10, 2022 YTD as of Feb 28, 2022 84.3% 54 82.2% 80.1% 79.7% 48 2019 2022 YTD System Completion 97.0% 94.7% 95.4% 94.7% Factor Delta Ranked No.1 Among Peers On Key O
Slide 5: Updated March Quarter Outlook
Updated March Quarter Outlook ▪ Expect positive Free Cash Flow in the March quarter on strong spring and summer travel demand ‒ March quarter Air Traffic Liability expected to grow by more than $2 billion from the December quarter 2021 ▪ Expected March quarter pre-tax loss consistent with initial ex
Slide 6: Non-Fuel Cost Framework On Track
Non-Fuel Cost Framework On Track Non-Fuel CASM Impact Versus 2019 2021 2022E ▪ NF CASM in 1H’22 on higher end of initial expectations Transition ~4 pts ~1-2 pts due to lower capacity and higher selling-related costs Underlying ‒ Expect 1H’22 NF CASM to be up mid-teens versus ~7 pts ~5-6 pts Business
Slide 7: Financial Priorities For Value Creation
Financial Priorities For Value Creation 1 Cost Performance Efficiently rebuild the airline, capture fleet renewal benefits and drive operating leverage to produce a competitive cost structure 2 Cash Generation Unit revenue premium and competitive cost structure expected to drive industry-leading mar
Slide 8: Confident In Our Positioning And Multi-Year Strategy
Confident In Our Positioning And Multi -Year Strategy Competitive Delta’s actions during the pandemic further strengthened its competitive advantages and 1 enhanced its position as a trusted consumer brand Advantages Industry Delta is leading the industry operationally and financially by demonstrati
Slide 9: Q&A
Q&A
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Delta sometimes uses information (“non-GAAP financial measures”) that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities and Exchange
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjustments. These reconciliations include certain adjustments to GAAP measures, which are directly related to the impact of COVID-19 and our response. These adjustments are made to provide comparability between the reported periods, if applicable, as indicated below: Restru
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations Total Revenue, adjusted and Total Unit Revenue Per Available Seat Mile ("TRASM"), adjusted Three Months Ended (Projected) (in billions) March 31, 2022 December 31, 2021 December 31, 2019 March 31, 2019 Total revenue $ ~9.4 $ 9.5 $ 11.4 $ 10.5 Adjusted for: Third-party refine
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Cost per Available Seat Mile, adjusted ("CASM-Ex") Three Months Ended Year Ended (Projected) (in cents) March 31, 2022 March 31, 2019 December 31, 2021 December 31, 2019 CASM ~19.65 15.14 14.40 14.67 Adjusted for: Restructuring charges - - 0.01 - Government grant recognition
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Debt. Delta uses adjusted total debt, including aircraft rent, in addition to adjusted debt and finance leases, to present estimated financial obligations. Delta reduces adjusted total debt by cash, cash equivalents and short-term investments, resulting in adjus
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