Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — J.P. Morgan Industrials Conference 2024
14 slides from Delta Air Lines's conference presentation, Mar 12, 2024
Slide 1: Industrials Conference
Industrials Conference March 12, 2024 1
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: Key Takeaway: Delta Is A Compelling Investment
Key Takeaway: Delta Is A Compelling Investment Best-in-class people underpin deepened competitive advantages THE DELTA Trusted consumer brand with industry-leading loyalty program DIFFERENCE Revenue diversification driving earnings and cash flow durability Delivering returns on invested capital more
Slide 4: Delta’s Brand Transcends The Industry
Delta’s Brand Transcends The Industry # 5 U.S. eCommerce Retailer # 11 Most Admired Companies Cobrand Spend Approaching 1% of U.S. GDP Delivered By The Best People In The Industry Comparison of Delta’s 2023 revenue from digital channels to estimates of e-commerce revenue of U.S. retailers; based on
Slide 5: Revenue Diversity Driving More Durable Financial Performance
Revenue Diversity Driving More Durable Financial Performance 2014 2023 Premium demand driven by brand affinity PREMIUM REVENUE $10B $19B and affluent customer base, with margins +10 pts above Main Cabin Delta Amex co-brand spend outgrowing credit AMEX REMUNERATION $2B $6.8B card industry, less corre
Slide 6: Returns-Focused Strategy
Returns-Focused Strategy INCREASING RETURNS ON CAPITAL Return on Invested Capital Long-term margin expansion Mid-Teens Mid-teens margin target with opportunity from increasing revenue ROIC in upper half diversity, optimization & efficiency of the S&P 500 13.4% More durable business expected to deliv
Slide 7: Executing On Three-Year Plan
Executing On Three-Year Plan Earnings Per Share Free Cash Flow Adjusted Debt / EBITDAR Approaching Investment Grade: Baa3 / BB+ / BB+ $3B - $4B $6 - $7 $6.25 5x $2B 3x $3 2x - 3x $0.2B 2022 2023 2024E 2022 2023 2024E 2022 2023 2024E Note: Historic results adjusted for special items; non-GAAP financi
Slide 8: Appendix
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Slide 9: Non-GAAP Reconciliations
Non-GAAP Reconciliations 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 Com
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations After-tax Return on Invested Capital ("ROIC"). 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. Retu
Slide 11: 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. Free cash flow is defined as net cash fro
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating revenue, adjusted related to premium products and diverse revenue streams Year Ended (in billions) December 31, 2023 Operating revenue $ 58.0 Adjusted for: Third-party refinery sales (3.4) Operating revenue, adjusted $ 54.7 Less: Main cabin revenue (24.5) Operating
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Pre-Tax Income, Net Income, and Diluted Earnings per Share, adjusted Year Ended Year Ended December 31, 2023 December 31, 2023 Pre-Tax Income Net Earnings (in billions, except per share data) Income Tax Income Per Diluted Share GAAP $ 5.6 $ (1.0) $ 4.6 $ 7.17 Adjusted for: M
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Debt to Earnings Before Interest, Taxes, Depreciation, Amortization and Rent ("EBITDAR"). We present adjusted debt to EBITDAR because management believes this metric is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes LGA
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