Delta Highlights Differentiation & Durability at 2024 Investor Day
Delta Air Lines (NYSE: DAL) presented its strategic priorities and long-term financial commitments at its 2024 Investor Day. The company outlined its three-to-five-year financial framework, targeting mid-teens operating margin, 10% average annual EPS growth, and $3-5B annual free cash flow. Delta emphasized its brand strength, customer experience enhancement, and financial discipline. For 2025, Delta projects 3-4% capacity growth, mid-single-digit revenue growth, and low-single-digit non-fuel unit cost growth year-over-year.
Delta Air Lines (NYSE: DAL) ha presentato le sue priorità strategiche e i suoi impegni finanziari a lungo termine nel suo Investor Day del 2024. L'azienda ha delineato il suo framework finanziario triennale-quinquennale, puntando a un margine operativo nella fascia media del percento, a una crescita media annuale dell'EPS del 10% e a 3-5 miliardi di dollari di flusso di cassa libero annuale. Delta ha enfatizzato la forza del suo marchio, il miglioramento dell'esperienza del cliente e la disciplina finanziaria. Per il 2025, Delta prevede una crescita della capacità del 3-4%, una crescita dei ricavi a una cifra media e una crescita dei costi unitari non legati al carburante a una cifra bassa rispetto all'anno precedente.
Delta Air Lines (NYSE: DAL) presentó sus prioridades estratégicas y compromisos financieros a largo plazo en su Día del Inversor 2024. La compañía delineó su marco financiero a tres a cinco años, con el objetivo de un margen operativo en la mediana de los porcentajes, un crecimiento medio anual de EPS del 10% y 3-5 mil millones de dólares en flujo de caja libre anual. Delta enfatizó la fortaleza de su marca, la mejora de la experiencia del cliente y la disciplina financiera. Para 2025, Delta proyecta un crecimiento de capacidad del 3-4%, un crecimiento de ingresos de un solo dígito en la media y un crecimiento de costos unitarios no relacionados con combustible de un solo dígito bajo año tras año.
델타 항공 (NYSE: DAL)은 2024 투자자 데이에서 전략적 우선 사항과 장기 재무 약속을 발표했습니다. 회사는 3~5년의 재무 프레임워크를 제시하며, 중간 출발점의 운영 마진, 10% 평균 연간 EPS 성장, 연간 30억~50억 달러의 자유 현금 흐름을 목표로 하고 있습니다. 델타는 브랜드 강점, 고객 경험 향상 및 재무 절제를 강조했습니다. 2025년을 위해 델타는 3-4%의 용량 성장, 중간 단일 자릿수의 수익 성장, 그리고 낮은 단일 자릿수의 비연료 단위 비용 성장을 예측하고 있습니다.
Delta Air Lines (NYSE: DAL) a présenté ses priorités stratégiques et ses engagements financiers à long terme lors de sa journée des investisseurs 2024. La société a défini son cadre financier sur trois à cinq ans, visant un marge opérationnelle dans les teen-moyens, un croissance annuelle moyenne de l'EPS de 10% et un flux de trésorerie libre annuel de 3 à 5 milliards de dollars. Delta a mis l'accent sur la force de sa marque, l'amélioration de l'expérience client et la discipline financière. Pour 2025, Delta projette une croissance de la capacité de 3 à 4%, une croissance du chiffre d'affaires à un chiffre médian et une faible croissance des coûts unitaires hors carburant d'une année sur l'autre.
Delta Air Lines (NYSE: DAL) hat seine strategischen Prioritäten und langfristigen finanziellen Verpflichtungen am Investorentag 2024 vorgestellt. Das Unternehmen skizzierte seinen finanziellen Rahmen für drei bis fünf Jahre, mit Zielen eines operativen Margen im mittleren Zehnerbereich, 10% durchschnittlichem jährlichem EPS-Wachstum und 3-5 Milliarden Dollar jährlichem freien Cashflow. Delta betonte die Stärke seiner Marke, die Verbesserung des Kundenerlebnisses und finanzielle Disziplin. Für 2025 prognostiziert Delta ein 3-4% Wachstum der Kapazität, ein Wachstum der Einnahmen im mittleren einstelligem Bereich und ein niedriges einstelliges Wachstum der nicht-kraftstoffbezogenen Stückkosten im Jahresvergleich.
- Targeting mid-teens operating margin
- Projected 10% annual EPS growth
- Expected $3-5B annual free cash flow
- 15%+ return on invested capital target
- Over $40B in unencumbered assets
- Forecasted mid-single-digit revenue growth for 2025
- Expected increase in non-fuel unit costs for 2025
- Noted CrowdStrike-caused outage impact in September quarter
Insights
Delta's investor day presentation reveals an ambitious yet achievable financial framework. The target of mid-teens operating margins and
The projected capacity growth of
Delta's strategic positioning emphasizes brand differentiation and premium customer experience, a important advantage in the competitive airline industry. The focus on high-margin revenue growth through enhanced customer choice and loyalty programs indicates a sophisticated revenue management strategy. This approach typically leads to better yield management and more stable revenue streams compared to competitors.
The emphasis on diverse revenue streams and secular growth in travel demand shows foresight in capitalizing on post-pandemic travel recovery trends. The company's investment in customer experience and operational reliability should help maintain its premium positioning and pricing power, particularly important as the industry faces ongoing cost pressures and capacity constraints.
Capitalizing on strength of Delta's brand and 15 years of consistent strategy, investment, and strong execution
Delivering sustained value creation through margin expansion, durable earnings and free cash flow, and balance sheet strength
"As we approach our Centennial, Delta's industry leadership and enduring competitive advantages are stronger than ever, powered by our 100,000 people worldwide," said Ed Bastian, Delta's CEO. "Our consistent strategy, investment, and execution over the past 15 years continue to elevate and unlock the value of our trusted brand. With this foundation, Delta is continuing to drive innovation for our customers and deliver sustained value for our owners."
Themes include:
- Positioned to Win: Building on its brand strength and leadership position, the airline is elevating all aspects of the travel experience, increasing customer choice and driving enhanced loyalty to Delta's brand. Through these actions Delta expects to drive greater customer value, supporting high-margin revenue growth and margin expansion.
- Delivering Durability: With enduring competitive advantages, diverse revenue and secular growth in travel demand, Delta is well positioned to deliver durable earnings and cash flow with the highest credit quality in the company's history.
- Creating Value: Growth in earnings and cash flow enable balanced capital allocation that supports disciplined reinvestment, continued debt reduction, and increased shareholder returns as leverage targets are achieved.
"Delta has a strong track record of differentiated financial performance with industry-leading returns," said Delta CFO Dan Janki. "We are introducing a three-to-five-year financial framework across key value drivers including margin expansion, durable earnings and free cash flow, and balance sheet strength that reflect Delta's financial discipline and strategic priorities."
Delta's value creation framework and financial targets will be discussed in greater detail at the event, and include the following:
MARGIN | DURABLE EARNINGS | BALANCE SHEET | |
Mid-teens Operating Margin |
Average Annual | 1x | |
Annual | |||
Commentary on December Quarter 2024 and 2025 Outlook
The Company reaffirmed expected December quarter financial guidance.
The Company also provided preliminary commentary on 2025 for capacity growth of three to four percent year-over-year, revenue growth of mid-single digits and non-fuel unit cost growth of low-single digits year-over-year.
Note, all guidance metrics grow from a 2024 baseline that excludes the impact of the CrowdStrike-caused outage in the September quarter. Please see the supplemental information on Delta's Investor Relations website at ir.delta.com for the impact to key metrics for the September quarter and full year.
Event and Presentation Details
The Investor Day will begin at 8:30 a.m. Eastern Standard Time and includes presentations from Bastian and Janki as well as Delta President Glen Hauenstein.
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.
Forward Looking Statements
Statements made in this press release 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 possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; our dependence on technology in our operations; increases in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("
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 (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent quarterly reports and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.
Non-GAAP Reconciliations
Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the
Delta is not able to reconcile certain forward looking non-GAAP financial measures used in this release without unreasonable effort because the adjusting items such as those used in the following reconciliation will not be known until the end of the indicated future periods and could be significant.
Adjustments. The following reconciliation includes certain adjustments to the GAAP measure that are made to provide comparability between the reported periods, if applicable, and for the reason indicated below:
Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.
Operating Revenue, adjusted | ||||
Three Months Ended | ||||
(in millions) | December 31, 2023 | |||
Operating revenue | $ 14,223 | |||
Adjusted for: | ||||
Third-party refinery sales | (563) | |||
Operating revenue, adjusted | $ 13,661 | |||
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SOURCE Delta Air Lines
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