Exhibit 99.1
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99011.jpg)
Delta Air Lines:
Challenging Times Require Aggressive Action
Challenging Times Require Aggressive Action
Ed Bastian
President and Chief Financial Officer
June 18, 2008
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99012.jpg)
1
Safe Harbor
This presentation contains various projections and other forward-looking statements which represent Delta’s estimates or
expectations regarding future events. All forward-looking statements involve a number of assumptions, risks and
uncertainties, many of which are beyond Delta’s control, that could cause the actual results to differ materially from the
projected results.Factors which could cause such differences include, without limitation, business, economic,
competitive, industry, regulatory, market and financial uncertainties and contingencies, as well as the “Risk Factors”
discussed in Delta’s Form 10-K filed with the SEC on February 15, 2008. Caution should be taken not to place undue
reliance on Delta’s forward-looking statements, which represent Delta’s views only as of the date of this presentation, and
which Delta has no current intention to update.
expectations regarding future events. All forward-looking statements involve a number of assumptions, risks and
uncertainties, many of which are beyond Delta’s control, that could cause the actual results to differ materially from the
projected results.Factors which could cause such differences include, without limitation, business, economic,
competitive, industry, regulatory, market and financial uncertainties and contingencies, as well as the “Risk Factors”
discussed in Delta’s Form 10-K filed with the SEC on February 15, 2008. Caution should be taken not to place undue
reliance on Delta’s forward-looking statements, which represent Delta’s views only as of the date of this presentation, and
which Delta has no current intention to update.
In this presentation, we will discuss certain non-GAAP financial measures in talking about our company’s performance.
You can find the reconciliations of those measures to comparable GAAP measures on our website at delta.com.
You can find the reconciliations of those measures to comparable GAAP measures on our website at delta.com.
In connection with its proposed merger with Northwest, Delta will file with the Securities and Exchange Commission
(“SEC”) a Registration Statement on Form S-4 that will include a joint proxy statement of Delta and Northwest that also
constitutes a prospectus of Delta. Delta and Northwest will mail the joint proxy statement/prospectus to their
stockholders.Delta and Northwest urge investors and security holders to read the joint proxy statement/prospectus
regarding the proposed merger when it becomes available because it will contain important information. You may obtain
copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC’s website (www.sec.gov).
You may also obtain these documents, free of charge, from Delta’s website (www.delta.com) under the tab “About Delta”
and then under the heading “Investor Relations” and then under the item “SEC Filings.” You may also obtain these
documents, free of charge, from Northwest’s website (www.nwa.com) under the tab “About Northwest” and then under
the heading “Investor Relations” and then under the item “SEC Filings and Section 16 Filings.”
(“SEC”) a Registration Statement on Form S-4 that will include a joint proxy statement of Delta and Northwest that also
constitutes a prospectus of Delta. Delta and Northwest will mail the joint proxy statement/prospectus to their
stockholders.Delta and Northwest urge investors and security holders to read the joint proxy statement/prospectus
regarding the proposed merger when it becomes available because it will contain important information. You may obtain
copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC’s website (www.sec.gov).
You may also obtain these documents, free of charge, from Delta’s website (www.delta.com) under the tab “About Delta”
and then under the heading “Investor Relations” and then under the item “SEC Filings.” You may also obtain these
documents, free of charge, from Northwest’s website (www.nwa.com) under the tab “About Northwest” and then under
the heading “Investor Relations” and then under the item “SEC Filings and Section 16 Filings.”
Delta, Northwest and their respective directors, executive officers and certain other members of management and
employees may be soliciting proxies from Delta and Northwest stockholders in favor of the merger. Information regarding
the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Delta and Northwest
stockholders in connection with the proposed merger will be set forth in the proxy statement/prospectus when it is filed
with the SEC. You can find information about Delta’s executive officers and directors in its Annual Reports on Form 10-K
for the year ended December 31, 2007 as well as in its definitive proxy statement filed with the SEC related to Delta’s
2008 Annual Meeting of Stockholders. You can find information about Northwest’s executive officers and directors in its
Annual Reports on Form 10-K (including any amendments thereto), Current Reports on Form 8-K and other documents
that have previously been filed with the SEC since May 31, 2007 as well as in its definitive proxy statement to be filed
with the SEC related to Northwest’s 2008 Annual Meeting of Stockholders. You can obtain free copies of these
documents from Delta and Northwest using the contact information above.
employees may be soliciting proxies from Delta and Northwest stockholders in favor of the merger. Information regarding
the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Delta and Northwest
stockholders in connection with the proposed merger will be set forth in the proxy statement/prospectus when it is filed
with the SEC. You can find information about Delta’s executive officers and directors in its Annual Reports on Form 10-K
for the year ended December 31, 2007 as well as in its definitive proxy statement filed with the SEC related to Delta’s
2008 Annual Meeting of Stockholders. You can find information about Northwest’s executive officers and directors in its
Annual Reports on Form 10-K (including any amendments thereto), Current Reports on Form 8-K and other documents
that have previously been filed with the SEC since May 31, 2007 as well as in its definitive proxy statement to be filed
with the SEC related to Northwest’s 2008 Annual Meeting of Stockholders. You can obtain free copies of these
documents from Delta and Northwest using the contact information above.
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99013.jpg)
2
Mitigate $4 billion impact
from fuel run-up
from fuel run-up
Recreate business model
through strategic
initiatives
through strategic
initiatives
Maintain a strong
liquidity position
liquidity position
Only the strongest will survive
the industry crisis
the industry crisis
Fuel and economy present
serious challenge to cash flow
serious challenge to cash flow
Delta’s Action Plan
Unprecedented fuel prices
Delta - - Challenging Times Require Aggressive Action
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99014.jpg)
3
2008 Jet Fuel Expense Will Break 2007 Record
Note: Expense and consumption are for US passenger and cargo airlines;
Source: Air Transport Association, Energy Information Administration, Department of Transportation
High Fuel Costs Are An Industry Reality
$22.7
$33.1
$38.5
$41.2
$61.2
$16.4
$14.8
$12.7
$15.2
0
10
20
30
40
50
60
70
2000
2001
2002
2003
2004
2005
2006
2007
2008F
Expense ($)
Consumption (Gals.)
($0.81)
($0.78)
($0.71)
($0.85)
($1.16)
($1.66)
($1.97)
($2.10)
($3.40)
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99015.jpg)
4
Passenger
Revenue
Increases
Revenue
Increases
$1.3B
Fuel Hedging
Benefits
Benefits
$0.8B
Revenue/Cost
Initiatives
Initiatives
$0.6B
• Strong top-line
growth
growth
• RASM gap to the
industry closed a
year ahead of
schedule
industry closed a
year ahead of
schedule
• 13% reduction in
domestic capacity for
2H08
domestic capacity for
2H08
• Benefits from 3+
years of international
network investment
years of international
network investment
• Multi-year hedge strategy
implemented
implemented
• 2008 - 2010 hedge portfolio
valued at $1.5 billion
valued at $1.5 billion
• Cost discipline and
technology
technology
• Revenue
improvements from
increased passenger
fees and growth in
cargo/ancillary
businesses
improvements from
increased passenger
fees and growth in
cargo/ancillary
businesses
• Continued benefits from international
expansion / domestic rationalization
expansion / domestic rationalization
• Recreate business model
• Over $1B in merger synergies
• Transatlantic JV
Gap to
Address
Address
$1.1B
Aggressive Actions Cover $3 Billion of $4 Billion Fuel Impact
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99016.jpg)
5
Capacity Change
Summer 2005 - Summer 2008
RASM improvements driven by domestic capacity reductions, international network
investment, and aggressive yield management
investment, and aggressive yield management
Delta Is Delivering Strong Top-Line Growth
RASM as % of Industry
Average 2005 - 2008
Average 2005 - 2008
Capacity Change
2H 2008 vs. 2H 2007
-13%
14%
-4%
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99017.jpg)
6
2008 Hedges To Offset $1 Billion In Fuel Price Impact
2Q 2008
3Q 2008
4Q 2008
2009
2010
Percent
Hedged
Jet Fuel
Equivalent Cap
49%
46%
40%
22%
5%
$2.76
$2.88
$3.30
$3.45
$3.05
Total value of
$1.5 billion
$1.5 billion
• Hedges also bolster cash balance - approximately $900 million of margin on fuel
hedges held in cash at May 31
hedges held in cash at May 31
Note: Hedge position as of June 13, 2008
Long-Term Fuel Hedge Strategy in Place
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex99018.jpg)
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Domestic capacity
reductions
reductions
Employee programs
Aggressive changes to
business model
business model
• Increased passenger fees and charges
• Growth in cargo and ancillary revenues
• Leverage technology and strict cost discipline to
drive savings in every area of the business
drive savings in every area of the business
• Over 4,000 employees chose to participate in
voluntary reduction programs - double the original
goal
voluntary reduction programs - double the original
goal
• $200 million in annual savings
• Domestic capacity down 13% in 2H08 with
flexibility to do more
flexibility to do more
• Committed to taking out all costs from reduced
flying
flying
• Mainline ex-fuel costs flat year-over-year by 4Q
Initiatives Target All Areas Of Delta’s Business
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8
Expecting A Profitable June Quarter
Current
Previous
Operating Margin
3 - 4%
3 - 5%
Fuel Price, all-in
$3.18
$3.13
Mainline Non-Fuel CASM (vs. PY)
Up 1 - - 2%
Up 1 - - 2%
System Capacity (vs. PY)
Up 1 - - 2%
Up 0 - - 2%
Domestic
Down 6 - 7%
Down 5 - 7%
International
Up 16 - - 17%
Up 15 - - 17%
Note: Projections exclude special items
June Quarter In Line With Previous Guidance
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Fuel Prices Require Incremental Capacity Reductions
Targeting flat mainline ex-fuel CASM by fourth quarter
Commitment to pulling out associated costs
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990111.jpg)
10
Delta Maintains A Strong Liquidity Position
Note: Liquidity balance includes cash and short term securities and $1B of undrawn revolver, and operating cash flow excludes fuel price increase
from 2007 to 2008
from 2007 to 2008
Cash Flow December 2007 vs. December 2008 ($B)
Fuel Price
Impact,
Net of Hedges
Unrestricted
Liquidity Balance
12/31/07
Unrestricted
Liquidity Balance
12/31/08
Net Debt
Issuance
3.2
3.8
(1.3)
Cap Ex
0.2
(3.0)
3.5
Operating
Cash Flow
Only $600 million liquidity change from $4 billion increase in fuel
Cash Preservation A Priority In Current Fuel Environment
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990112.jpg)
11
Creating America’s Premier Global Airline
Delta/Northwest Merger Is A Game-Changing Transaction
• Revenue-generating potential of global network combined with best-in-
class cost structure makes Delta a formidable competitor for the long-
term
class cost structure makes Delta a formidable competitor for the long-
term
• Combination brings together unique, non-replicable assets
• #1 or #2 market share in every global market
• Combined carrier will have ~20% of domestic capacity with unparalleled
fleet flexibility
fleet flexibility
• Significant synergies resulting from transaction
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990113.jpg)
12
Unique
Asia slot portfolio
& 787 order book
Optimized &
enhanced Tokyo
hub
enhanced Tokyo
hub
1952 US-Japan treaty
governs air-service rights
governs air-service rights
Extensive domestic
network
network
KLM JV
4-way JV initiated
Largest immunized JV with
31% of transatlantic
capacity
31% of transatlantic
capacity
Air France JV
Asia & Canada
Diversified global
network
network
Capital intensive to
replicate organically
replicate organically
Europe, Middle
East, Africa &
Latin America
East, Africa &
Latin America
100-seaters and
large widebodies
large widebodies
Right plane for the
right route
right route
Capital intensive and
limited order books
limited order books
Small and mid-
sized aircraft
sized aircraft
>$2B cost
savings in
Chapter 11
savings in
Chapter 11
Best-in-class CASM
Requires Chapter 11
restructuring
restructuring
>$2B cost
savings in
Chapter 11
savings in
Chapter 11
Northwest Strength
Difficult to Replicate
+
=
&
Delta Strength
Strategic Advantages Cannot Be Easily Replicated
Delta / Northwest Combination Creates A Powerful Competitor
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990114.jpg)
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Over $1 Billion in Annual Synergies Modeled … | …With Room for Upside | |
• Fleet optimization | • Joint venture | |
• Network presence | • Affinity card | |
• Selling expenses | • Loyalty program | |
• Information Technology | • Regional flying portfolio | |
• Overhead reduction | • Growth of ancillary businesses | |
• Facilities and station overlap | • Cargo | |
• Supply chain |
Significant Synergies Resulting From Transaction
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990115.jpg)
14
File Hart-
Scott-Rodino
with
Department of
Justice and
make other
regulatory
filings
Department of
Justice and
make other
regulatory
filings
Complete
regulatory
process
regulatory
process
Shareholder
approval
approval
Close
merger
merger
Begin
integrating
airlines
integrating
airlines
April 2008
Fall/Winter 2008
INTEGRATION PLANNING
Merger On Track to Close By The End of 2008
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Mitigate impact from
fuel prices
fuel prices
Strengthen foundation
with Northwest merger
with Northwest merger
Maintain a strong
liquidity position
liquidity position
Increased revenues, improved productivity and
aggressive hedging will mitigate $3 billion of the
$4 billion impact from fuel in 2008 … continue
aggressive hedging will mitigate $3 billion of the
$4 billion impact from fuel in 2008 … continue
to transform business model
Revenue-generating potential of a global
network, best-in-class cost structure, and strong
balance sheet make Delta a formidable
competitor for the long-term
network, best-in-class cost structure, and strong
balance sheet make Delta a formidable
competitor for the long-term
Strong operating cash flows allow for only
modest change in liquidity despite multi-billion
dollar impact of fuel prices … liquidity raising
initiatives under review
modest change in liquidity despite multi-billion
dollar impact of fuel prices … liquidity raising
initiatives under review
Strategically Positioned for Long-Term Success
Delta - - Challenging Times Require Aggressive Action
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990117.jpg)
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Non-GAAP Reconciliations
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990118.jpg)
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Length of Haul Adjusted PRASM
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990119.jpg)
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Operating Margin
![](https://capedge.com/proxy/8-K/0001019687-08-002740/delta_8k-ex990120.jpg)
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Mainline Non-Fuel CASM