Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Raymond James Global Airline Conference 2011
10 slides from Delta Air Lines's conference presentation, Feb 3, 2011
Slide 1: Delta: Building A Better Airline
Delta: Building A Better Airline Raymond James Global Airline Conference February 3, 2011
Slide 2: Safe Harbor
1 Safe Harbor This presentation contains various projections and other forward-looking statements which represent Delta’s estimates or expectations regarding future events. All forward-looking statements involve a number of assumptions, risks and uncertainties, many of which are beyond Delta’s contr
Slide 3: Delta: Building A Better Airline
2 Delta: Building A Better Airline Higher revenues plus solid cost performance drive $2.5 billion year-over-year improvement in profitability for 2010 Uniquely positioned for the challenges of 2011 Strong free cash flow generation Solid financial foundation and low cost structure, coupled with lower
Slide 4: 2010: Airlines Return to Profitability
3 2010: Airlines Return to Profitability 2010 Operating Income ($M) Note: All results exclude special items. Delta’s industry-leading results are among the best in its history In 2010, Delta: • Improved pre-tax income by more than $2.5 billion over 2009 • Generated a 10% return on invested capital •
Slide 5: Clearing the Runway for 2011
4 Clearing the Runway for 2011 With integration complete, Delta is positioned to capture the longer-term efficiencies of the merger Revenue, capacity and fleet efficiency mitigate the short-term impact of fuel price spike and allow for margin improvement over the long-term Delta’s direct relationshi
Slide 6: Building A More Efficient Airline
5 Building A More Efficient Airline • Eliminating 250+ small-gauge domestic aircraft, including turboprops, 50-seat jets and DC9s • $400 million operating income benefit from lower aircraft ownership costs, better fuel burn and improved operating efficiency Generating 2008 revenue levels with 165 fe
Slide 7: Fuel Price Run-up Is Call To Action
Fuel Price Run-up Is Call To Action Fuel prices increased 20% over last 100 days Jet Fuel Price per Gallon Actions We Are Taking • Accelerate aircraft retirements • Retire DC9-50 fleet • Retire 60 50-seat regional jets • Retire Saab fleet • Price tickets for the increased cost of fuel • 4 domestic f
Slide 8: Commitment to Debt Reduction Remains Intact
7 Commitment to Debt Reduction Remains Intact Adjusted Net Debt ($B) 12/31/09 12/31/12 Strong cash generation, disciplined capital spending generate significant free cash flows to delever the balance sheet Net Interest Expense ($B) 3/31/11 $14.6 billion Debt reduction drives $500 million in annual e
Slide 9: Commitment To $1.3 Billion Annual CapEx
Commitment To $1.3 Billion Annual CapEx Annual Capital Spending Levels (billions) Prudent capital management enables sustainable $2 billion+ annual free cash flows 8 2008 2009 2010 2011 2012 2013 2014+ $2.2 $1.3 $1.3 $1.3 $1.2 $1.4 $1.3
Slide 10: Path To Improving Shareholder Returns
9 Path To Improving Shareholder Returns Generate sustainable 10%+ return on invested capital 10 - 12% operating margin $5 billion EBITDAR Minimize capital reinvestment requirements Use cash to delever the balance sheet Non-GAAP Financial Measures We sometimes use information that is derived from our
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