Exhibit 99.2
This investor update provides Delta’s guidance for the March quarter 20101,2.
Advance Revenue Trends
| · | 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. |
| · | The company expects passenger RASM to increase approximately 8% in February and 16% in March, compared to the same period last year. |
| · | Corporate revenue and ticket volumes have increased approximately 30% year over year for the last four weeks. |
February Storm Impact
| · | 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
| · | 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. |
Share count
| · | Delta expects approximately 832 million weighted average shares outstanding for the March quarter. |
Key Financial Metrics
| | | Mar Qtr 2010 |
| Operating margin | | 1 – 2% |
| | | |
| Consolidated fuel price, including taxes and hedges | | $ 2.22 |
| | | |
| Capital expenditures | | $ 365 million |
| | | |
| Cargo and other revenue | | $1.1 billion |
| | | |
| Non-operating expense | | $325 million |
| | | |
| | | Mar Qtr 2010 vs. Mar Qtr 2009 |
| Consolidated CASM ex-fuel | | Up 1 - 2% |
| | | |
| System capacity | | Down 4 - 5% |
| Domestic | | Down 2 - 3% |
| International | | Down 7 - 8% |
| | | |
| Mainline capacity | | Down 4 - 5% |
| Domestic | | Down 2 - 3% |
| International | | Down 7 - 8% |
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Fuel hedge update
| | | % of Projected Fuel Requirements Hedged |
| | | Mar Qtr 2010 |
| Call options | | 23% |
| Collars | | 6% |
| Swaps | | 18% |
| Total | | 47% |
| | | |
| Projected fuel price/gallon | | $2.22 |
Projected fuel price includes:
| · | Assumed $85.90 all-in price per barrel for crude oil plus refining spread |
| · | Hedge gain of $0.07/gallon |
| · | $0.24 for taxes, transportation and hedge premiums |
Notes
| 1 | 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 | Delta is unable to reconcile forward looking projections to GAAP as the nature or amount of special items cannot be estimated at this time. |
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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