Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Next Generation Equity Research 2009 U.S. Airline Conference
13 slides from Delta Air Lines's conference presentation, Dec 9, 2009
Slide 1: Delta Air Lines – Next Generation Equity Research 2009 U.S. Airline Conference
Delta Air Lines Hank Halter Chief Financial Officer Next Generation Equity Research 2009 U.S. Airline Conference December 9, 2009
Slide 2: Safe Harbor
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 control
Slide 3: Delta Strengths Unmatched In The Airline Industry
2 • Unmatched $2 billion synergy opportunity • At least $700M targeted to be delivered in 2009 • Smoothest airline merger in history • Solid execution • Global network with #1 or #2 positions in all markets • Significant revenue stream from international routes • Continued strengthening of network S
Slide 4: Delta's Fundamental Business Strength Is Solid
Delta’s Fundamental Business Strength Is Solid Lingering impact of 2008 fuel hedge decisions masking financial performance September Quarter 2009 Pre-Tax Income, Fuel Neutralized ($M) 176 82 52 36 21 (65) (182) In the September quarter, Delta: • Reported a solid unrestricted liquidity balance of $5.
Slide 5: Delta Maintaining A Strong Liquidity Position
Delta Maintaining A Strong Liquidity Position September 2009 Liquidity ($B) 6.0 5.5 4.1 2.9 5.0 2.6 2.5 1.2 1.0 4.5 0.4 4.0 Liquidity Position ($B) 5.1 5.8 5.4 5.0 5.0 Seasonal Air Traffic Liability shift = $800M -$1 Billion Dec-08 Mar-09 Jun-09 Sep-09 Dec-09
Slide 6: Financing Transactions Significantly Reduced Delta's Upcoming Maturities
Financing Transactions Significantly Reduced Delta’s Upcoming Maturities 2010 Debt Maturities and Revolver Expirations $3.4 B 55% reduction $1.5 B Pre-Transactions Post-Transactions 5 Transactions generated $600 million incremental liquidity
Slide 7: Industry Revenue Environment Is Improving, But Remains Challenging
Industry Revenue Environment Is Improving, But Remains Challenging • Challenges remain: • Significant reduction in premium class demand • Aggressive sale activity • Weaker booking class and cabin mix • Sequential RASM improvement is evident Industry Revenue (% Chg YoY) 25% 20% 15% 10% 5% 0% -5% -10%
Slide 8: Delta Corporate Sales Trends Improving
Delta Corporate Sales Trends Improving 2009 Corporate Revenue Trends % Change versus Prior Year Ticket volume Revenue 10% 0% -10% -20% -30% -40% -50% Mar Apr May Jun Jul Aug Sep Oct Nov 7
Slide 9: Delta's Foundation For The Future
Delta’s Foundation For The Future As economy improves, Delta well positioned to benefit from recovery Drive Revenue Premium Execute Merger Synergies Delever Balance Sheet Right Size Operations • Aggressive implementation of Northwest merger $2 billion in annual benefits • Fleet optimization • Hub re
Slide 10: Integration Will Be Substantially Complete By Early 2010
Integration Will Be Substantially Complete By Early 2010 2009 Progress To Date • $12 billion revenue JV launched with AF-KLM • Widebody cross-fleeting implemented on key routes, such as ATL-Tokyo, DTW-London/Heathrow • Domestic and international onboard food and amenities harmonized • Airport consol
Slide 11: December Quarter Expectations
December Quarter Expectations Operating margin1 Fuel price Total liquidity Consolidated non-fuel unit cost1 Mainline non-fuel unit cost1 System capacity Domestic International December quarter 2009 Current projection Breakeven $2.15 $5.1 billion December quarter 2009 vs. December quarter 2008 Up 5 -
Slide 12: Delta Is Well Positioned For Long-Term Success
Delta Is Well Positioned For Long-Term Success Game-Changing Merger with Northwest Leading Global Network Disciplined Approach to Managing Company Solid Financial Foundation • Global network with #1 or #2 positions in all markets • Air France/KLM JV reinforces transatlantic leadership position • Com
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