Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (March 2007)
17 slides from Delta Air Lines's investor presentation, Mar 27, 2007
Slide 1: Fly Right: Achieve Industry RASM Parity
Fly Right: Achieve Industry RASM Parity Glen Hauenstein Executive Vice President Network Planning & Revenue Management March 27, 2007
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: Can Delta Achieve Industry RASM Parity?
Can Delta Achieve Industry RASM Parity? Domestic capacity rationalization that leads to Industry leading RASM performance International expansion - Investing in the future Targeted growth enabled by new fleet additions The power of the Atlanta hub We have the right tools in place
Slide 4: Delta's Gap To Industry Closing
....And Delta's Gap To Industry Closing Passenger RASM as % of Industry (1) (Length Of Haul Adjusted) PRASM Delta Light Blue Medium Blue Dark Blue Light Red Medium Red Dark Red Yellow Orange Brown Tan White Lt Gray Medium Gray Dark Gray Very Dark Gray Black Right Hash Mark Vertical Hash Mark Left Ha
Slide 5: Significant Domestic Capacity Rationalization Achieved
Significant Domestic Capacity Rationalization Achieved Delta reduced domestic capacity while rest of industry(1) grew (DL -13% vs. +3%) Domestic capacity rationalization a major component of Delta's business plan 2007 domestic system down 1-3% 2007 domestic mainline down 5-7% YOY change in domestic
Slide 6: While Investing in Future Profitability
....While Investing in Future Profitability DL AA CO US UA NW 925 277 260 156 125 62 Source: OAG; New market and city ASMs in 3Q 06 versus 3Q 05 Delta Added Over 50% of New Industry Capacity ASM % 51% 15% 15% 9% 7% 3%
Slide 7: Business Timed Departures Driving Strong RASM Performance
Business Timed Departures Driving Strong RASM Performance 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 East -1.7 0.8 1.7 0.3 0.5 0.2 1.2 -1.2 1.7 -0.2 0.1 0.4 0.9 0 -0.3 -2.2 -0.6 -0.8 -0.7 Source: OAG data April 2005 versus April 2007 Off-peak departure
Slide 8: Mainline Aircraft Utilization up 8% from 2005
Mainline Aircraft Utilization up 8% from 2005 ....While Fleet Utilization Continues to Increase Source: Spring 2007 vs. Spring 2005 Schedule Aircraft utilization up 2% over 2006 Mainline aircraft flying average of 12.4 hours per day, up from 11.5 hours in 2005 Regional aircraft flying average of 10.
Slide 9: Capacity Diversification Fundamental to Delta's Plan
Atlantic Latin Pacific Medium Blue Dark Blue Light Red Medium Red Dark Red Yellow Orange Brown Tan White Lt Gray Medium Gray Dark Gray Very Dark Gray Black Right Hash Mark Vertical Hash Mark Left Hash Mark Rain Pattern Bright Red Bright Yellow Bright Green Bright Light Blue Bright Dark Blue Pastel R
Slide 10: Atlanta is the Boardwalk of Airline Hubs
Atlanta is the Boardwalk of Airline Hubs Source: Delta internal analysis No other US airline can connect five continents via one hub Atlanta is becoming the airport of choice and convenience for connections between Europe/Asia/Africa and Latin America Unrivalled destination breadth US/Canada 182 Eur
Slide 11: World of Profitable Growth Available to Delta
World of Profitable Growth Available to Delta Seeking China route authority Launching Seoul in 2007 777-200LR opens new markets New reach through expanded codeshares Asia/Pacific Atlanta superior gateway New markets with Los Angeles gateway NYC to Caribbean, Central and South America Latin America F
Slide 12: Down Gauge is a Key Component of the Plan
Down Gauge is a Key Component of the Plan Note: Assumes other airline average seats per departure remains constant (based on aircraft orders) Approaching industry average gauge will close Domestic load factor gap Domestic gauge gap vs industry Closing Domestic Gauge Gap... will help to Close Load Fa
Slide 13: U.S. Carrier International Widebody Fleet Expansion
AA CO DL NW UA US+HP Existing 120 44 67 58 117 19 Growth 8 35 28 10 U.S. Carrier International Growth Constrained Delta is the only carrier with significant international aircraft growth in the near future US Carrier International Widebody Fleet Expansion Source: Company & Boeing Reports as of July
Slide 14: Delta - Positioned to Win
Delta - Positioned to Win Leisure focused Right-sized Destination Origin Via Redeploying widebodies Creating new gauge opportunities Removed four fleet types, best-in-class costs Engaged / motivated workforce Adding more premium seats, digital entertainment, new interiors Operating profitable hubs a
Slide 15: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 16: RASM Gap to Industry Average
RASM Gap to Industry Average Note: Charter revenue is excluded and length of haul is adjusted as management believes this is helpful to investors in comparing the Company's passenger revenue per ASM to the industry.
Slide 17: Year over Year Mainline RASM Change
Year over Year Mainline RASM Change