Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Baird 2019 Global Industrial Conference
11 slides from Delta Air Lines's conference presentation, Nov 7, 2019
Slide 1: Delta Air Lines
Delta Air Lines Baird 2019 Global Industrial Conference Paul Jacobson, Chief Financial Officer November 7, 2019
Slide 2: Safe Harbor
Safe Harbor 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 Act of 1995
Slide 3: Current State of the Business
Current State of the Business • On track to achieve December quarter earnings and revenue guidance − Revenue environment remains solid driven by corporate and leisure demand as well as diverse revenue streams • Expect industry-leading free cash flow generation of more than $4 billion for the full ye
Slide 4: Momentum Building Following Transformational Decade
Momentum Building Following Transformational Decade Established Strengthened Accelerating Solid Foundation Competitive Advantages Our Momentum • Created a more customer- • Pioneered multi-class product • Diversifying revenue stream focused operation segmentation including robust Amex growth • Improv
Slide 5: Results Underscore Magnitude of Transformation
Results Underscore Magnitude of Transformation Established Strengthened Accelerating Solid Foundation Competitive Advantages Our Momentum ~$8.5B $5.8B ~$6B $4.5B $1.4B ($1.1B) 2009 2014 2019E Pre-Tax Income Operating Cash Flow Note: Non-GAAP financial measures reconciled in Appendix 4
Slide 6: Increasingly Diversified Top Line Improves Resiliency
Increasingly Diversified Top Line Improves Resiliency Total Revenue Components • Larger portion of our revenue is now generated by more diverse, higher-margin 2018 $44B revenue streams 31% Main Cabin • Since 2011, both premium ticket revenue and 2011 $35B loyalty have more than doubled, with strong
Slide 7: Remain Focused on Non-Fuel Expense Trajectory
Remain Focused on Non-Fuel Expense Trajectory • Continue to expect non-fuel unit cost growth for 2019 to be approximately 2% Non-Fuel Unit Cost Trajectory • Full year non-fuel unit cost growth approximately 1 point higher than initial expectations 4.0% − Higher revenue growth, incremental employee c
Slide 8: The Delta Difference
The Delta Difference Top-Line Growth Culture Global Fortress Margin Expansion + Network Balance Sheet Balanced Capital Operational Customer Allocation Reliability Loyalty Unmatched Competitive Long-Term Value A Powerful Brand Advantages Creation 7
Slide 9: Non-GAAP Reconciliations Q&A
Non-GAAP Reconciliations Q&A 8
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Financial Measures The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate due to rounding. Delta sometimes uses information ("non-GAAP financial measures"
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Cash Flow, Adjusted We adjust operating cash flow for hedge margin because this adjustment removes the impact of current market volatility on our unsettled hedges and allows investors to better understand and analyze the company’s core operational performance in th
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