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News / Delta spotlights strengthened competitive advantages and brand momentum
Airline announces three-year financial targets and outlook, details customer-centric approach at Capital Markets Day as it presents strategic priorities to lead through and beyond the recovery
Delta Air Lines presents its plan for leading the air travel industry through the next phase of the recovery, powered by an intense focus on customers, the strength of its trusted consumer brand and its values-based, people-centric culture of service.
The airline is presenting its strategic priorities at its Capital Markets Day for the investor community, hosted at the New York Stock Exchange in New York City.
During the event, senior leadership will discuss how Delta is expanding its platform to create value over the long term. Highlights from the day will include:
- Competitive Advantages: Delta’s actions during the pandemic further strengthened its competitive advantages and enhanced its position as a trusted consumer brand
- Industry Leadership: Delta is leading the industry operationally and financially by demonstrating agility, operational excellence and discipline
- Brand Preference: Delta continues to elevate the customer experience through its best-in-class service and by investing across the travel ribbon, enhancing brand preference and loyalty
- Earnings Power: Delta expects to deliver meaningful profitability in 2022 on its path to improved earnings power beyond pre pandemic levels by 2024
- Financial Foundation: Delta’s top financial priority is restoring its financial foundation, with a focus on efficiency and cash generation to achieve investment grade metrics by 2024
Delta’s financial targets will be discussed in greater detail at the event, and include the following:
Financial Targets:
| 2022 | 2023 | 2024 | |
| ASMs (vs. 2019) | ~90% | ~100% | 100%+ |
| Total Adjusted Revenue (ex-Refinery) | - | - | > $50B |
| NF CASM (vs. 2019) | Up 7% to 10% | Up Low to Mid-Single Digits | Up Low Single Digits |
| Fuel ($ / gallon) | $2.20 - $2.30 | $2.20 - $2.30 | $2.20 - $2.30 |
| EPS | - | - | > $7.00 |
| Gross Capital Expenditures | ~$6B | ~$5B to $5.5B | ~$4.5B to $5B |
| Free Cash Flow | - | - | > $4B |
| Adjusted Net Debt | - | - | ~$15B |
Additional Metrics and Assumptions:
- 2024 operating margin in mid-teens
- 2024 operating cash flow > $9B
- 2024 adjusted debt / EBITDAR between 2.0x and 3.0x
- 2024 ending liquidity between $5B and $6B
- 2024 ROIC in the mid-teens
Delta also issued an investor update, raising December quarter financial guidance. The airline now expects to generate an adjusted pre-tax profit of ~$200 million in the December quarter.
Capital Markets Day will begin at 8:15 a.m. Eastern Standard Time and includes presentations from Bastian and Janki as well as Delta President Glen Hauenstein and President-International Alain Bellemare. It also will feature a Q&A with Bastian and Stephen J. Squeri, Chairman and CEO of American Express, in which they will discuss the growing value of the partnership between the two companies in the recovery and beyond.
Attendance in person is by invitation only. Presentation slides and a live webcast will be available on Delta’s Investor Relations website at ir.delta.com. A replay of the event will be available shortly after the event.
