Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (December 2022)
33 slides from Delta Air Lines's investor presentation, Dec 14, 2022
Slide 1: Delta Air Lines Financial Outlook & Strategic Update
Delta Air Lines Financial Outlook & Strategic Update December 14, 2022
Slide 2: Julie Stewart, Vice President, Investor Relations
Julie Stewart VICE PRESIDENT, INVESTOR RELATIONS
Slide 3: Safe Harbor
Safe Harbor Statements made in this presentation that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Secu
Slide 4: Chief Executive Officer
ie eae CHIEF EXECUTIVE OFFICER
Slide 5: Key Takeaway: Delta Executing Well Against Three-Year Plan
Key Takeaway: Delta Executing Well Against Three-Year Plan DELTAS THE INDUSTRY LEADER CONSTRUCTIVE INDUSTRY BACKDROP. BUILDING FINANCIAL MOMENTUM + Bestin-aspeopl serie and operation * Unique demand divers + EPS rowing to $5-$6 n2028 and >$7n 2024 «= Premium consume: rand withstrng lly + Consumer sp
Slide 6: Industry Demand Continues To Recover To Long-Term Trend
Industry Demand Continues To Recover To Long-Term Trend Air Travel Revenue Below Long-Term GDP Trend 73 idutryReuneTo Fem AOR 243008 of Historical Average Missing Demend Industry Revere 138 y 13% 13% UK oy i 2 4. Upside To Trend Il ul - 201s 20620720820 aon 20 ‘wee. 1990 2000-999 200020 a0
Slide 7: Constructive Industry Backdrop Reinforces Confidence In 2023
Constructive Industry Backdrop Reinforces Confidence In 2023 Industry Capacity 2008 PrePandemic Anas stints MULTI-YEAR INDUSTRY CONSTRAINTS — restrantenic ; ‘ation supply | Hiringand | Pilot soe gendcltt chaindelays | ttaningneeds | constraints estimatesin2022 "914 Limits on Rising cost of industry
Slide 8: Industry Revenue Airline Industry Seats
Industry Revenue Airline Industry Seats
Slide 9: 2022 Performance Review
2022 Performance Review roy 14 a mm WORK Capital Markets Day Priorities Year One Results Run best-in-class operation Disciplined restoration, swift operational recovery from May/June challenges with industry-leading full year performance Strengthen brand and elevate customer experience > NPSexceedin
Slide 10: Generating Meaningful Profitability
Generating Meaningful Profitability Operating Income S148 $158 $148 re || 202 302 co 030, OperatingMargin > | tk 1% 1% v.20 etn 69 a5 As CHALLENGING OPERATING ENVIRONMENT. * Hredend tained * Monagnginftionnlding 25000 peopl! record etfuel res * Invested inoperaion ding Navigatingregoral unprecedente
Slide 11: Strong Financial Outlook For 2023 And On Plan For 2024 Targets
Strong Financial Outlook For 2023 And On Plan For 2024 Targets Revenue Growth: YeorOnete 15%6-20% ore eH ‘9 Free Cash Flow $28 >$4B Leverage 3x35 Ix-3x et EBTDAR AR. retest 2
Slide 12: Strengthening Delta's Durable Competitive Advantages
Strengthening Delta's Durable Competitive Advantages PEOPLE OPERATIONAL GLOBAL CUSTOMER FINANCIAL & CULTURE RELIABILITY NETWORK LOYALTY FOUNDATION Fortes WetkdsBest . P 1 Destin cles domes ot . Employers ranking, « Mlavasre sri hts brand profitability + Wot renowned and completion ctor + Leadinginte
Slide 13: Glen Hauenstein, President
f Glen Hauenstein PRESIDENT
Slide 14: Strong Demand Environment Continues
Strong Demand Environment Continues A Revenue Recovery, 52019 ome 10395 1% | a0 1022 ron sa ae ester enn GAP asec pi 1o7%-1085 an2e Robust holiday demand and continued consumer strength Corporate revenue steady at 80% recovered vs 2019 ‘Strong 1023 bookings with continued improvement expected in rev
Slide 15: Delivering On Long-Term Commercial Strategy
Delivering On Long-Term Commercial Strategy 2022 Accomplishments Position Us To Extend Our Lead In 2023 DEEPEN NETWORK. EXPAND PREMIUM. GROW LOYALTY INCREASE REVENUE ADVANTAGES REVENUE ECOSYSTEM DIVERSIFICATION 16
Slide 16: Fleet Evolution Enables Efficient Capacity Restoration
Fleet Evolution Enables Efficient Capacity Restoration ‘System Capacity Restoration vs2019 a. 101% 26 268 20% 1 | roe roe ore zone zone 2008 rN A A Departures Seats ASM Achieving full ASM restoration on fewer departuesin 2023, Mainline fleetlargr than 2019 ufleet underutilized exiting 50- seatjets i
Slide 17: Restoring Domestic Capacity Through Core Hubs
Restoring Domestic Capacity Through Core Hubs . i iti 2022 SHAPED BY UNIQUE JnitRevenue! Industry-Leading Hub P 2H2 Unit Revenue! in sty fading Hu estes OPPORTUNITIES a £2 postennsbcttop10OUS ces Won * Prost) * Peclehie hubs securing incor hubs prstion inlagest reveruemarkets ost bs Corb CAPITALIZIN
Slide 18: Global Network Supported By Coastal Hubs And Leading JVs
Global Network Supported By Coastal Hubs And Leading JVs Partner 1Vs Unlock Commercial Value And Create A Seamless Customer Experience vegnatanc 4 acromexico PLATAM ADELTA AIRFRANCE ICL KORFANAIR ‘us-menco ‘HU: SOUTH AMERICA HAUS.CORSTAL LD STANDARD LEADING TRANSPACIICHV MARKET SHARE NeTWoRK’ . 5 OW
Slide 19: Applying Proven Playbook To International
Applying Proven Playbook To International International Margin Domestitevels * igh single Digs : U 2018 209 2008 LongTerTorst AR. iterates ase 20304208 RESHAPING GLOBAL NETWORK Coastal gatenaysdive interationl opportunity * Growingourmost profitable interationa french, Transatlantic above 2019 * Lea
Slide 20: Elevating Customer Experience Through Premium Products And Service
Elevating Customer Experience Through Premium Products And Service Premium Seat Growth Has Significantly Outpaced Main Cabin GROWING HIGH MARGIN PREMIUM PRODUCTS. = Preniumseatmixgrovingto30%by 2024, oy *2ptsrs 2019 and 21 pss, 2009, Differential = Growth furthers customer segmentation In Premium "=
Slide 21: Delta's Loyalty Ecosystem Drives High Margin Revenue
Delta’s Loyalty Ecosystem Drives High Margin Revenue “SkY MILES | jg ‘American Express Remuneration To Delta LOYALTY GROWTH OPPORTUNITIES sm — Card&Spend | Small Non-Air $550 Growth Business Parinerships a Premium Personalization | Travel so Mix Related p_ | Sustained Loyalty Growth re ee ee ee es
Slide 22: Continuing To Increase Revenue Diversification
Continuing To Increase Revenue Diversification Total Revenue — Preniomraduts Non Tice! Main A +15% -20% 19% am% 57% 2% 20 209 200 200 Premium & Non-Ticket revenue isexpected to be 80% of 2023 growth (On track for>60% of revenue in 2024 from Premium & Non-Tiket sources Basic economy <5% of passenger
Slide 23: Chief Financial Officer
) ' sa CHIEF FINANCIAL OFFICER
Slide 24: Raising 4Q Earnings Guidance
Raising 4Q Earnings Guidance pm | me “ $135-$140 $100-$125 Operating Margin 11% 96-196 meeps ir tert 8225 teen B
Slide 25: Non-Fuel Unit Costs Improving In 4Q
Non-Fuel Unit Costs Improving In 4Q Non-Fuel Unit Cost! vs. 2019 Unit Costsimproving December Quarter With efit Sale And Eciency mm a6 ¥ (lO)pts 156 1% 12 nan sen san asueve2019 > |B me ee ae Hentai ong singe iso baespet AR. esis trston eins mmceere ape Pace of capacity restoration ‘Training intensi
Slide 26: 2023 Non-Fuel Unit Costs Expected To Decline 5% To 7% Year Over Year
2023 Non-Fuel Unit Costs Expected To Decline 5% To 7% Year Over Year Non-Fuel Unit Cost! UNIT COST DRIVERS ns Y %-7%) +(e * Operating leverage = Low-cost capacity growth ~ Driving efficiency = Completing rebuild = Managing inflation * Investing to extend advantages Comparedto 2019 ort 22a 2e NonFuel
Slide 27: Driving Operating Leverage With Lower-Cost Capacity Growth
Driving Operating Leverage With Lower-Cost Capacity Growth Increasing Utilization And Gauge Rebuilding Int'l Long-Haul zation! ‘Spstem Capaciy Mi Maint 19 18 3m 30% 25% [] 209 200 2023 2019 roe 2023 Gaugetvs2019 6% ro sileten ames he sesgrombeol ihn ean cairn rm tsprdate Large narrowbodies half of m
Slide 28: Network Growth Focused In Cost Efficient, High-Margin Core Hubs
Network Growth Focused In Cost Efficient, High-Margin Core Hubs Restoring Core Hubs Added Sets), 2022 Scaleandstrong local sharein core martts High volume connecting traffic without 25 of every 10 core ub passengers connecting Delta’ legest nd highest margin hub - ‘Atlanta ~is 45% of 2023 domestic s
Slide 29: Focused On Margin Improvement
Focused On Margin Improvement 90% 03% 2009 2010-2014 Average Operating Margin LONG-TERM 143% 16-196 MARGIN DRIVERS 108-08 ; = Commercial strategy o% ~ Premium revenue ~ Loyalty ecosystem = Intemational growth if += Fleet renewal 2a15-2019 nt ont ome 5 “average * Operating leverage AR Wcsivsestespter
Slide 30: Executing Against Three-Year Financial Plan
Executing Against Three-Year Financial Plan Significant EPS Growth Eamings Per Shoe 237 | 3 207 me Op. Margin TOKE AR totetisiotesiens anti Sustained Free Cash Flow Reducing Debt Free Cashflow Adjusted Debt /EBTOAR si se Pension Fully unde 508 eae a. [ | a ron 2023 2024 ont oe Capex ‘Adj. NetDebt $5
Slide 31: Delivering Long-Term Value Creation
Delivering Long-Term Value Creation ROIC Miers 4 tow Double Digs 4 RETURN ON + 2% INVESTED Y L ” ort 20238 ante AR. otchisasrssteson
Slide 32: tes
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Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities and Exchange
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