Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (June 2020)
14 slides from Delta Air Lines's investor presentation, Jun 19, 2020
Slide 1: Delta Air Lines
Delta Air Lines June 19, 2020 ADELTA 4
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 Environment
Current Environment • COVID-19 has had an unprecedented impact on our business • Delta’s response to this crisis has been focused on three key priorities: 1. Protecting the health and safety of our employees and our customers 2. Preserving financial liquidity to work through this crisis 3. Defining
Slide 4: Reducing Cash Burn and Boosting Liquidity
Reducing Cash Burn and Boosting Liquidity • Minimizing cash burn is the most valuable action to preserve liquidity Average Daily Cash Burn - Daily cash burn in June quarter to date better than original expectations in April - Driven by strong cost performance and an improvement in net sales $100M •
Slide 5: Aggressive Self-Help Measures to Preserve Cash
Aggressive Self-Help Measures to Preserve Cash Capacity and Fleet Cost Reductions − Planned capacity reduced by more than 85% − Expect June quarter total expenses to decline by year-over-year in the June quarter ~55% over prior year − Parking and retiring aircraft to save costs with − Labor savings
Slide 6: Strengthening Delta's Liquidity Position
Strengthening Delta’s Liquidity Position Cash Preservation Financing and Liquidity − Expense reduction has driven significant − Ended March quarter with $6 billion, expect to end improvement in daily rate of cash burn June quarter with over $15 billion in liquidity − Reduced planned capex by ~$3.5 b
Slide 7: More Certain Near-Term Position Enables Recovery Planning
More Certain Near-Term Position Enables Recovery Planning • Preparing for slow and choppy recovery due to dual effect of pandemic and recession - Revenue recovery could take up to 2 to 3 years to return to a new level of normal • Multi-year recovery requires Delta to be a smaller carrier and make st
Slide 8: Current Environment Overshadows Decade of Transformation
Current Environment Overshadows Decade of Transformation Pre-Tax Operating Income Cash Flow • Established strong financial foundation over the last decade $8.5B • Unique service culture $6.2B $6.8B • Industry-leading operational $5.3B performance and network • Strong customer loyalty and increased $
Slide 9: Strong Foundation Positions Delta Well For Recovery
Strong Foundation Positions Delta Well For Recovery 2009 2014 2019 Domestic Net Brand strength and record customer satisfaction Promoter Score 15% 34% 51% Amex Cash More resilient, higher margin revenue streams Contribution $1.2B $2.0B $4.1B Interest and Focus on reducing financing costs Pension Exp
Slide 10: Long-term Opportunity Unchanged by Near-term Challenges
Long-term Opportunity Unchanged by Near-term Challenges Powerful Brand Unmatched Strong Partner Proven Track Record With Industry- Competitive Portfolio and of Execution & Leading Returns Advantages Global Scale Reinvestment Commitment to Carbon Neutrality and Environmental Sustainability 9
Slide 11: Question & Answer
Question & Answer ADELTA 4
Slide 12: 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 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Pre-Tax Income, Adjusted – Annual We adjust pre-tax income for the following items to determine pre-tax income, adjusted for the reasons described below. MTM adjustments and settlements on hedges. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Cash Flow, Adjusted We present operating cash flow, adjusted because management believes adjusting for the following items provides a more meaningful measure for investors. Adjustments include: Hedge deferrals, including early settlements. During the March 2015 qua