Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Deutsche Bank 2012 Aviation and Transportation Conference
15 slides from Delta Air Lines's conference presentation, Sep 6, 2012
Slide 1: Delta: Keep Climbing
Delta: Keep Climbing Deutsche Bank 2012 Aviation and Transportation Conference September 6, 2012
Slide 2: Safe Harbor
2 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, that
Slide 3: Delta: Keep Climbing – Continuing Financial Momentum
3 Delta: Keep Climbing Continuing Financial Momentum Solid September Quarter Focused on the Future: Structural Initiatives Differentiate Delta Industry leading financial improvement driven by strong gains in revenue Solidly profitable September quarter despite rising jet fuel prices Structural initi
Slide 4: Investing in Customer Service and Operations
4 Investing in Customer Service and Operations Operational excellence driving higher customer satisfaction Completion factor up 0.6 points 99.1% 99.7% 2Q11 2Q12 79.8% 87.5% 2Q11 2Q12 2.84 2.02 2Q11 2Q12 8 point improvement in on - time arrival rate 29% reduction in mishandled bags (rate per 1,000 )
Slide 5: Making Delta an Airline Customers Prefer
Making Delta an Airline Customers Prefer 5 Domestic Net Promoter Score 16% 12% 14% 19% 21% 17% 19% 22% 24% 26% Q1 Q2 Q3 Q4 2010 2011 2012
Slide 6: Managing Capacity to Maximize Revenue
9% 8% 11% 13% 10% 14.5% 13% 14.5% 13% 13% 11% 6% 8% 4.5% 4% 1 - 3% 6% 7% 10% 12% 8% 11% 8% 10% 6% 8% 8% 4% 6% 2% Jun-11 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep-12 Delta A4A Managing Capacity to Maximize Revenue Sixteen consecutive months of RASM outperformance driven by corporate
Slide 7: Strong Corporate Revenue Growth Driving RASM Gains
Strong Corporate Revenue Growth Driving RASM Gains Largest Corporate Sectors Leading Revenue Growth Corporate booked revenues up 9% for the September quarter despite 1 - 3% capacity reduction 7 Delta Corporate Revenue from Diverse Pool of Industries Defense 3% Banking 3% Energy 5% Transportation 4%
Slide 8: Creating Financial Momentum In Face Of Rising Fuel Costs
Creating Financial Momentum In Face Of Rising Fuel Costs 8 Note: All results exclude special items and mark to market adjustments on fuel hedges $(890) $368 $(29) $554 1H09 1H10 1H11 1H12 Delta’s Pre - tax Income ($M) Average realized fuel price $3.33 $3.06 $2.28 $2.16
Slide 9: Delta Has The Industry's Best Momentum
583 Delta Has The Industry’s Best Momentum 9 $554 $412 $299 $263 $135 $(153) YOY Change 528 86 (184) 303 186 YTD - June 2012 Pre - tax Income ($M) Note: All results exclude special items and mark to market adjustments on fuel hedges
Slide 10: Forecasting A Solid September Quarter
10 Forecasting A Solid September Quarter September quarter 2012 Operating margin 9 – 11% Consolidated fuel price per gallon $3.23 Total unrestricted liquidity $5.0 billion September quarter 2012 vs. September quarter 2011 Passenger unit revenue Up 3 - 4% Consolidated ex - fuel unit cost Up 4.5 – 5.5
Slide 11: Taking the Lead at New York-LaGuardia
Taking the Lead at New York - LaGuardia 11 • Largest expansion in 40 years to 260 daily flights – Service to 47 of the top 50 business markets • Already producing margin improvements – LaGuardia margin improved 3 points in July on a 40% increase in capacity • Further benefits expected from: • Networ
Slide 12: Refinery Acquisition Addresses Rising Fuel Costs
8.28 8.53 3.14 3.18 0.41 1.22 2009 2011 • Refinery acquisition reduces exposure to the growing long - term risk around jet fuel pricing and availability • At full capacity, the refinery will cover 80% of Delta’s domestic jet fuel needs through production and off - take agreements • Long - term agree
Slide 13: Improving Margins Through Fleet Restructuring
Improving Margins Through Fleet Restructuring • Regional jet fleet to be reduced by 200 or more 50 - seaters by 2015 • Flying to be backfilled by 717s, MD90s, 737 - 900ERs, and two - class regional jets • New pilot agreement critical to this effort • Significant structural cost reductions from retir
Slide 14: Derisking the Business through Debt Reduction
Derisking the Business through Debt Reduction Solid Progress On Debt Reduction… $17B 6 /30/12 $ 12.1B $10B 14 On track to achieve $10 billion adjusted net debt target in the next 12 months $1.3B $1.0 B $0.8 2009 2012 At Target …Producing Interest Expense Savings and Enhanced Flexibility 2009 Mid - 2
Slide 15: Non-GAAP Financial Measures
15 Delta: Keep Climbing Continuing Financial Momentum Solid September Quarter Focused on the Future: Structural Initiatives Differentiate Delta Industry leading financial improvement driven by strong gains in revenue Solidly profitable September quarter despite rising jet fuel prices Structural init
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