delta’s transformation story · • delta is more valuable than ever and is the market’s...

24 May, 2018

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Delta’s Transformation Story

Clare Wheatley – General Manager AU/NZ & VA Joint Venture

24 May, 2018


Delta’s Size and Scope

• In 2008 Northwest Airlines merged with Delta Air Lines to become what was then the world’s largest airline.

• Today Delta is the second largest airline in the world –operating more than 5,000 flights a day and serving 200 million customers a year.

• Delta flies to 323 destinations in 57 countries.

• When combined with our global partners we touch more than 662 destinations in 125 countries on six continents.

• Operate a fleet of 1,200+ aircraft.

• 80,000 employees worldwide.2

No One Better Connects The World

24 May, 2018


3

Make Delta a great place for

EMPLOYEESto work and grow

Make Delta an airline

CUSTOMERSwant to fly and partner with

Make Delta an airline

SHAREHOLDERSwant to invest in

The Delta Difference

24 May, 2018


4

$6.4B Total Since 2007

Pre-Tax Profit Profit Sharing

Leading Financial Results

24 May, 2018


• Delta is more valuable than ever and is the market’s highest valued airline

• Average stock price has increased 30% since 2015

• 2018 forecasted to exceed USD$60 per share

Delta Stock Price

$10

$20

$30

$40

$50

$60

►12/31/2012 1/19/2018◄

Performance Evident in Stock Price

24 May, 2018


USD$40 million to Charities in 2017

• 1% of net profits donated to key nonprofits in education, wellness and military/veterans causes

• +$3.7 million contributed to hurricane and earthquake relief efforts

• Partnered with Aeromexico to build Habitat for Humanity homes in Mexico in 2017 and working with China Eastern in 2018

6

Increasingly, A Brand With Purpose

24 May, 2018


1. FY 2017 Domestic Network preliminary results2. YTD November 2017 preliminary results

Completion Factor (CF)1 On-Time Arrival (A0)1 DOT Missed Bag Ratio2

97.3%

98.0%

98.0%

98.1%

98.6%

98.7%

Jetblue

Alaska

American

United

Southwest

Delta

#1: 6 of 12 months

58.8%

59.7%

62.2%

62.7%

68.1%

71.1%

Southwest

Jetblue

Alaska

American

United

Delta

#1: 11 of 12 months

2.78

2.74

2.32

1.77

1.74

1.64

Southwest

American

United

Delta

Alaska

Jetblue

#1: 6 of 12 months

Top Tier Operational Performance

24 May, 2018


0 7 1467 79

161

241 241

2010 2011 2012 2013 2014 2015 2016 2017

+241 days

• 50 consecutive 100% Mainline Completion Factor days

• 84 consecutive maintenance free Completion Factor days

• Fastest IROP recovery on record (Hurricane Irma)

• Managing reliability by focusing on:– IROP recovery / constraint management– Big Data / predictive maintenance

Maintenance Cancellations3Domestic 100% Completion Factor Days2

Mainline System 100% Completion Factor Days1

5,212

3,057

1,212 748 404 240 123 71

2010 2011 2012 2013 2014 2015 2016 2017

(98%)

1: FY 2010 – 2016; FY 2017 based on YTD November actuals and December projection2: Domestic 100% CF days LTM September 20173: FY 2010 – 2016; YTD November 2017 results

Continuing to Set the Bar

24 May, 2018


Optimal and balanced network structure+

West Coast expansion+

~60% or greater share in all 4 interior hubs

Delta is #1 or #2 in 55 of top 100 cities & largest carrier in New York

ATL

MSP

DTW

SLC NYC

LAX

SEA BOS

CVG

RDU

Hub

Focus City

Unrivaled Domestic Network

24 May, 2018


LAX Offers Robust Network

Delta in LAX offers:• Non-stop flights to 37 domestic destinations

and 15 international destinations

• 175 peak day departures

• Co-location with partner airlines to reduce minimum connections times

• DL continues to invest in LAX to enhance Sky Clubs, concession options and other customer experiences

24 May, 2018


LGA 2019-2024

SLC 2020

LAX 2023

SEA 2021

ATL 2019

SELF-SERVICE BAG DROP

FACIALRECOGNITION

Investing $12 billion in airport infrastructure

Infrastructure Investments

24 May, 2018


Fly Delta App• Wayfinding• Auto Check-in

RFID

Branded Fares on Delta.com

Investments in Technology

24 May, 2018


• Delta One suite offers each customer a private space accessed by a sliding door, including:

- Thoughtfully designed personal stowage areas- Advanced in-flight entertainment system- Premium trim and finishes for an unparalleled

experience- Memory foam-enhanced comfort cushion- Customizable ambient lighting

• B777 refurbishment due on SYDLAX early 2019

13

World’s First All-Suite Business ClassDelta One Suites

24 May, 2018


42%

22%

5%4%

(13%)

(30%)

NPS by Carrier

Note: DL NPS is YTD November 2017 for International, FY 2017 for Domestic

Domestic NPS

International NPS

Domestic Goal: 44%International Goal (ex-Mexico): 6%

Multiple initiatives underway to improve Delta’s international NPS scores

• Upgraded food, faster Wi-Fi, free inflight messaging, improved product and new training

International Experience

24 May, 2018


APACAMERICAS

• Strategic initiatives underway with all partners in 2018• Delta influences more than $25B of industry revenue

EMEAI

49% Owner, Joint Venture

9.5% Owner

Joint Venture



Joint Venture

3.2% Owner

Joint Venture

Joint Venture and Equity Portfolio

24 May, 2018


• Access to global demand growth, beyond destinations and local market expertise• #1 or #2 carrier in 8 of the top 10 markets, covering 99% of global GDP

Top 10 Markets Exit U.S. by Industry Revenue

$8.2B

$5.4B $4.8B $4.7B $4.6B $4.5B $4.3B$3.3B $3.2B $3.0B

UK China Mexico Japan Canada France Germany India Italy Brazil

No Local PartnerLocal Partner

DL +Partner Rank

#2

#2 #3#1 #2 #1 #2 #2 #1 #3

The Best Global Network

24 May, 2018


51%

20%

17%

7%

5%

% of Total Seats (US-AU)

Combining Virgin Australia’s Domestic and Trans-Tasman routes with Delta’s network beyond Los Angeles creates comprehensive connectivity

*Based on Jul-Sep 2018, schedules subject to change *Jul 2018, schedules subject to change

SYDBNE

MEL

LAXWell-Connected

Service-Focused

JV with VA Creates Unparalleled Value

24 May, 2018


• Strong brand, founded on operational reliability and service excellence

• Delta benefitting from return on prior product investments as we target new areas of emphasis in 2018

• Delivering superior experiences customers value and are willing to pay for central to top-line revenue growth

• Continuing to make Delta the airline brand high value customers want to fly will deliver that growth

Source: Forbes November 201718

Positioned to Win: Now & Over Time

24 May, 2018


“When you take care of your employees, they will take great care of your customers, who then reward you with their business and loyalty. Every major business decision we make at Delta is

based on that philosophy, and it has been very successful for us.” – Ed Bastian19

Engaged Employees Drive Greater Customer Loyalty

24 May, 2018


DELTA’S CULTURE OF

SERVICE

Making customers feel special

24 May, 2018


Thank You

delta’s transformation story · • delta is more valuable than ever and is the market’s...

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