Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT ON FORM 8-K - DELTA AIR LINES, INC. | delta_8k-030910.htm |
| EX-99.1 - PRESENTATION - DELTA AIR LINES, INC. | delta_8k-ex9901.htm |
Exhibit 99.2
This
investor update provides Delta’s guidance for the March quarter 20101,2.
Advance
Revenue Trends
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·
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Projected
system load factors for March 2010 and April 2010 of 84% and 82%,
respectively, are expected to be 1-3 points higher than the prior year
period.
|
|
·
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The
company expects passenger RASM to increase approximately 8% in February
and 16% in March, compared to the same period last
year.
|
|
·
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Corporate
revenue and ticket volumes have increased approximately 30% year over year
for the last four weeks.
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February
Storm Impact
|
·
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Delta
cancelled approximately 7,000 flights, or 3.2% of system capacity, due to
severe weather in February. As a result of these cancellations,
revenue declined by $65 million and costs decreased $35 million, for a net
impact of $30 million.
|
Liquidity
|
·
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Delta
expects to end the March 2010 quarter with $5.5 billion of unrestricted
liquidity. This is lower than previous guidance due to $130
million of accelerated pension
funding.
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Share
count
|
·
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Delta
expects approximately 832 million weighted average shares outstanding for
the March quarter.
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Key
Financial Metrics
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Mar
Qtr 2010
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||
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Operating
margin
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1 –
2%
|
|
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Consolidated
fuel price, including taxes and hedges
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$
2.22
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|
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Capital
expenditures
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$
365 million
|
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Cargo
and other revenue
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$1.1
billion
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|
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Non-operating
expense
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$325
million
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Mar
Qtr 2010 vs. Mar Qtr 2009
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||
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Consolidated
CASM ex-fuel
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Up
1 - 2%
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System
capacity
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Down
4 - 5%
|
|
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Domestic
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Down
2 - 3%
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|
|
International
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Down
7 - 8%
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|
|
Mainline
capacity
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Down
4 - 5%
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|
|
Domestic
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Down
2 - 3%
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International
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Down
7 - 8%
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Fuel
hedge update
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As
of 3/5/2010
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|
%
of Projected Fuel Requirements Hedged
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||
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Mar
Qtr 2010
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||
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Call
options
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23%
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|
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Collars
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6%
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Swaps
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18%
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Total
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47%
|
|
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Projected
fuel price/gallon
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$2.22
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Projected
fuel price includes:
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·
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Assumed
$85.90 all-in price per barrel for crude oil plus refining
spread
|
|
·
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Hedge
gain of $0.07/gallon
|
|
·
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$0.24
for taxes, transportation and hedge
premiums
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Notes
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1
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Delta excludes (a) special items
because management believes the exclusion of these items is helpful to
investors in evaluation of the company’s recurring operational performance
and (b) out-of-period fuel hedge losses in order to present financial
results related to operations in the period
shown.
|
|
2
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Delta
is unable to reconcile forward looking projections to GAAP as the nature
or amount of special items cannot be estimated at this
time.
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Forward
Looking Statements
Statements
in this Investor Update 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. 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 and strategies reflected in or suggested by the
forward-looking statements. These risks and uncertainties include,
but are not limited to, the cost of aircraft fuel; the effects of the global
recession; the effects of the global financial crisis; the impact of posting
collateral in connection with our fuel hedge contracts; the impact
that our indebtedness will have on our financial and operating activities and
our ability to incur additional debt; the restrictions that financial covenants
in our financing agreements will have on our financial and business operations;
labor issues; the ability to realize the anticipated benefits of our merger with
Northwest; the integration of the Delta and Northwest workforces; interruptions
or disruptions in service at one of our hub airports; our increasing dependence
on technology in our operations; our ability to retain management and key
employees; the ability of our credit card processors to take significant
holdbacks in certain circumstances; the effects of terrorist attacks; and
competitive conditions in the airline industry.
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 Form 10-K for the year
ended December 31, 2009. Caution should be taken not to place undue
reliance on our forward-looking statements, which represent our views only as of
March 9, 2010 and which we have no current intention to update.
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