Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (July 2008)
15 slides from Delta Air Lines's investor presentation, Jul 16, 2008
Slide 1: Investor Update July 2008
Exhibit 99.2 Investor Update July 2008
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 A
Slide 3: Delta's Multi-Year Transformation Is Paying Off
Delta’s Multi-Year Transformation Is Paying Off Profitable June 2008 quarter1 despite $1 billion input cost increase from fuel prices • Strong liquidity position and solid balance sheet • Generating a revenue premium to the industry • Best in class cost structure • Consistent top-tier results in ope
Slide 4: Strategic Position Enhanced With Northwest Merger
Strategic Position Enhanced With Northwest Merger Delta/Northwest merger is a game-changing transaction • Merger enables strong unit revenue growth while maintaining industry leading cost performance • Combination cannot be matched due to unique assets • Expected to create $2 billion in annual syner
Slide 5: Delta / Northwest Combination Creates A Powerful Competitor
Delta / Northwest Combination Creates A Powerful Competitor Strategic advantages cannot be replicated by other combinations Delta Strength + Northwest Strength = Unique & Difficult to Replicate Extensive domestic Asia slot portfolio Optimized & 1952 US-Japan treaty network & 787 order book enhanced
Slide 6: Combination Will Deliver $2 Billion In Annual Synergies By 2012
Combination Will Deliver $2 Billion In Annual Synergies By 2012 Comprehensive analysis shows significant additional value Steady-State Synergy ($B) • Initial targets established utilizing high-level approach • Refinement of projections through detailed analysis by 25 Delta/Northwest integration team
Slide 7: Unique Deal Conditions Drive Synergy Realization
Unique Deal Conditions Drive Synergy Realization Synergies ramp up to full run-rate by 2012 Synergy Phase-in ($B) • Unprecedented pre-merger joint pilot agreement allows acceleration of network synergies • Substantial integration planning underway • SkyTeam partnership, combined with transatlantic a
Slide 8: Unprecedented Pre-Merger Joint Pilot Contract
Unprecedented Pre-Merger Joint Pilot Contract Will have combined seniority list on Day One • Four-year combined pilot agreement provides substantial benefits – Contract has pilot leadership approval – Expect ratification to be complete by mid-August • All pilots to receive 2009 pay increase and equi
Slide 9: Combination Will Create World's Largest Loyalty Program
Combination Will Create World’s Largest Loyalty Program Significant value expected from aligning affinity cards and loyalty programs • Combination will create world’s largest loyalty program with over 60 million members • Combining loyalty programs and affinity cards will provide industry- leading o
Slide 10: One-Time Cash Integration Costs Reduced To $600 Million
One-Time Cash Integration Costs Reduced To $600 Million Prioritizing activities that drive real value to customers, employees and shareholders One-Time Cash Integration Costs • Operations: Move to a single operating certificate • Customer: Deliver a consistent customer experience - - employee traini
Slide 11: Targeting To Close Merger By End Of Year
Targeting To Close Merger By End Of Year April 2008 4Q 2008 File Hart- Scott -Rodino with Begin Department of Shareholder Complete Close integrating Justice and approval regulatory merger make other process airlines (Sept 25) regulatory filings INTEGRATION PLANNING • Post-merger leadership team for
Slide 12: Delta Is Positioned For Long-Term Success
Delta Is Positioned For Long-Term Success • Differentiating the airline through top-line growth, decisive response to fuel prices, flexible workforce, and merger with Northwest • Durable financial foundation - merger enables strong unit revenue growth while maintaining industry leading cost performa
Slide 13: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations Note: In connection with its emergence from bankruptcy on April 30, 2007, Delta adopted fresh start reporting in accordance with American Institute of Certified Public Accountants’ Statement of Position 90-7, “Financial Reporting by Entities in Reorganization under
Slide 14: Net Income
Net Income Delta excludes special and reorganization related items because management believes the exclusion of these items is helpful to investors to evaluate the company’s recurring operational performance. 13
Slide 15: Slide 15