Delta Air Lines : Investor Presentation - July 22nd, 2021(opens in new window)

Delta Air Lines

Investor Presentation

July 22, 2021

Forward-looking Statement Disclaimer

The statements 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 Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the material adverse effect that the COVID-19 pandemic is having on our business; the impact of incurring significant debt in response to the pandemic; failure to comply with the financial and other covenants in our financing agreements; the possible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; breaches or lapses in the security of technology systems on which we rely; disruptions in our information technology infrastructure; our dependence on technology in our operations; our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to realize the full value of intangible or long-lived assets; labor issues; the effects of weather, natural disasters and seasonality on our business; the cost of aircraft fuel; the availability of aircraft fuel; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management, key employees and our culture; significant damage to our reputation and brand, including from exposure to significant adverse publicity; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive government regulation on our business; the impact of environmental regulation and climate change risks on our business; and unfavorable economic or political conditions in the markets in which we operate.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of July 22, 2021, except as otherwise indicated, and which we undertake no obligation to update except to the extent required by law.

1

Achieved Significant Milestones During June Quarter 2021

• Narrowed June quarter pre-tax loss, adjusted1 to $881 million, a more than $2 billion sequential improvement
• • Reported pre-tax profit in June month with a high single digit pre-tax margin, adjusted1
  • Generated $1.9 billion of operating cash flow, $1.5 billion of free cash flow1 and $195 million free cash flow, adjusted1
• Ranked No.1 among peers on all key operating metrics, including completion factor and on time performance year-to-date June
• Our people and our brand recognized as No. 1 North American airline by J.D. Power for 2021

Revenue & Corporate Volume Recovery

Total Revenue, adjusted1	Corporate Volume
(% recovered vs 2019)	(% recovered vs. 2019)

		65% - 70%			55% - 60%
	51%			40%
35%			20%
1Q21	2Q21	3Q21E	Mar 21	Jun 21	Sep 21E	1 Non-GAAP measure

2

September Quarter Outlook

• Expect September quarter pre-tax margin, adjusted1 in the mid-single digits at the mid-point of guidance ranges
• Total Revenue, adjusted1 expected to improve another $2 billion versus June quarter 2021 on 10% capacity growth as business and international demand continues to recover
• CASM-Ex1 of up 11% to 14% versus September quarter 2019 driven by selling-related and 5 to 6 points of rebuild expense

% vs. September Quarter 2019	September Quarter Guidance
	(As of July 14, 2021)
Capacity	Down 28% - 30%
Total Revenue, Adjusted1, 2	Down 30% - 35%
	($8.2 - $8.8 billion)
Fuel Price ($/gal)1	$2.05 - $2.15
CASM-Ex1	Up 11% - 14%
Capital Expenditures	~$800 million
Adjusted Net Debt1	~$19.0 billion

1. Non-GAAPmeasure
2. Excludes refinery sales and DPJ revenue

3

Restoring Financial Strength as Recovery Progresses

1	Protect		2	Stabilize		3	Restore
	Protect our people			Restore customer			Sustain free cash
	and our customers			confidence and			flow generation
				eliminate cash burn
	Preserve our financial						Generate returns
	liquidity			Reduce debt and fully			above cost of capital
				fund pension plans on
	Lay the groundwork			PPA1 basis			Achieve investment
	for the recovery
						grade metrics
				Return to profitability

1 Pension Protection Act

4