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24 May, 2018
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Delta’s Transformation Story
Clare Wheatley – General Manager AU/NZ & VA Joint Venture
24 May, 2018
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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
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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
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4
$6.4B Total Since 2007
Pre-Tax Profit Profit Sharing
Leading Financial Results
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• 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
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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
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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
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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
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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
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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
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LGA 2019-2024
SLC 2020
LAX 2023
SEA 2021
ATL 2019
SELF-SERVICE BAG DROP
FACIALRECOGNITION
Investing $12 billion in airport infrastructure
Infrastructure Investments
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Fly Delta App• Wayfinding• Auto Check-in
RFID
Branded Fares on Delta.com
Investments in Technology
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• 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
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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
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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
49% Owner, Joint Venture
10% Owner, Joint Venture
Joint Venture
3.2% Owner
Joint Venture
Joint Venture and Equity Portfolio
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• 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
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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
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• 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
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“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
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DELTA’S CULTURE OF
SERVICE
Making customers feel special
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Thank You