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Delta's comprehensive 5 year financial plan outlined

General Lee

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Portions of the announcement:

DELTA ANNOUNCES PLAN TO RETURN MORE THAN $1 BILLION TO SHAREHOLDERS OVER NEXT THREE YEARS
BOARD OF DIRECTORS INITIATES $0.06 PER SHARE QUARTERLY DIVIDEND, AUTHORIZES $500 MILLION SHARE REPURCHASE
BALANCED CAPITAL DEPLOYMENT CREATES UP TO $5 BILLION OF VALUE FOR SHAREHOLDERS THROUGH FURTHER DEBT REDUCTION, RETURN OF CASH TO SHAREHOLDERS, AND MANAGEMENT OF PENSION LIABILITY
May 8, 2013

ATLANTA, May 8, 2013 /PRNewswire/ -- In a broad financial plan released today, Delta Air Lines (NYSE:DAL) announced a balanced capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years.


In an investor presentation this morning, Delta outlined a comprehensive, five-year financial plan. The plan focuses on free cash flow generation through a combination of expected earnings improvements and a disciplined approach to capital investment. Over the next five years, the company plans to reinvest $2.0 - $2.5 billion annually, or approximately 50 percent of its operating cash flow, into improving the company's fleet, facilities, products and technology. The resulting free cash flow will be used to return cash to shareholders, further reduce the company's debt, and opportunistically address longer-term pension funding needs, driving up to $5 billion of value to Delta's shareholders.

As part of this plan, Delta expects to achieve and maintain an adjusted net debt level of $7 billion, a $5 billion reduction over 2012. By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company's balance sheet risk and generating more than 50 percent savings in interest expense.

The company also plans to make up to $1 billion of incremental contributions to the company's defined benefit pension plans over the next five years. These contributions would be in addition to the $650 - $700 million annual required minimum contribution.




Red,

Did you read the last paragraph? Seems like they do want to tackle the defined benefit pension under funding. And they planned originally to decrease the net debt to $10 billion by the end of this year, but now want to decrease it to $7 billion.... Impressive, eh Red? I know SWA has had dividends forever, but this is an impressive re-start for a legacy.


Bye Bye---General Lee
 

SWA Bubba

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That news is FANTASTIC! ;)

Seriously, good for Delta--I hope it works out the way management plans. It's about time to see airlines making money again.

Bubba
 

jonjuan

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As part of this plan, Delta expects to achieve and maintain an adjusted net debt level of $7 billion, a $5 billion reduction over 2012. By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company's balance sheet risk and generating more than 50 percent savings in interest expense.

Did you read the last paragraph? Seems like they do want to tackle the defined benefit pension under funding. And they planned originally to decrease the net debt to $10 billion by the end of this year, but now want to decrease it to $7 billion.... Impressive, eh Red? I know SWA has had dividends forever, but this is an impressive re-start for a legacy.


Bye Bye---General Lee

Do you have reading comprehension issues? The $7 Billon debt level plan isn't the end of this year. Did Mom not breastfeed you?
 

tab flyer

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Do you have reading comprehension issues? The $7 Billon debt level plan isn't the end of this year. Did Mom not breastfeed you?

Actually he said 7B as the Long term goal, not the end of the year. Reread his comment yourself.
 

General Lee

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Do you have reading comprehension issues? The $7 Billon debt level plan isn't the end of this year. Did Mom not breastfeed you?

Actually your Mom still breast feeds me. Anyway, never said $7 billion by this year, just that the new target they have is $7 billion. Your Mom says hi...


Bye Bye---General Lee
 

jonjuan

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Actually he said 7B as the Long term goal, not the end of the year. Reread his comment yourself.

Not talking about what delta said, but what private lee said, "and they planned to originally decrease the debt to $10 Billion by the end of this year, but now want to decrease it to $7 Billion." He gets excited in his moms basement and wants to play with the big kids, but they won't let him.
 

Sy-bil

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I wonder what Delta's comprehensive five year financial plan was on September 10, 2001?

No one has accurately predicted this industry five years in the future at any point in its history. And rarely for the better.
 

Hpilot

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That's great! I think Delta currently has a great management team/plan and it's nice to see them have the extra money to buy refineries and start paying dividends. I hope in the future, Delta and American can be healthy competitors with both companies prospering.
 

JOPILOT

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To Bad DALPA didn't grow a set during negotiations...Delta had more to spend!!!

JP
 

johnsonrod

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Actually your Mom still breast feeds me. Anyway, never said $7 billion by this year, just that the new target they have is $7 billion. Your Mom says hi...


Bye Bye---General Lee

CLASSIC RESPONSE!!!!! LOL! :D:D

Now back to the topic at hand....
 

whymeworry?

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WADR, General, are you a rep for DALALPA? Or in DAL mgmt? I mean, I think it's great they are paying down debt, etc. But once again the professional pilots of Delta are financing this. Didn't you guys pay dearly to save the airline in the post- 9/11 years? Only then to take the first offer last summer? You guys should have held out for more. The money was there and you certainly deserved it. But 68% of you caved... mostly on fear.

By my rough math, Delta has announced nearly $2.5 billion in spending projects since this time last year, yet the pilots got a paltry raise. No wonder so many are upset over there and pushing for DPA.

IMO, the pilots of Delta deserved more, a lot more. But their own paranoia and union leaders (I use that term loosely) sold them own. Now the corporation benefits. Bravo.

WAFJ.
 

General Lee

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WADR, General, are you a rep for DALALPA? Or in DAL mgmt? I mean, I think it's great they are paying down debt, etc. But once again the professional pilots of Delta are financing this. Didn't you guys pay dearly to save the airline in the post- 9/11 years? Only then to take the first offer last summer? You guys should have held out for more. The money was there and you certainly deserved it. But 68% of you caved... mostly on fear.

By my rough math, Delta has announced nearly $2.5 billion in spending projects since this time last year, yet the pilots got a paltry raise. No wonder so many are upset over there and pushing for DPA.

IMO, the pilots of Delta deserved more, a lot more. But their own paranoia and union leaders (I use that term loosely) sold them own. Now the corporation benefits. Bravo.

WAFJ.


Sure, the DL pilots probably did deserve more. I guess gas prices coming down, lower interest rates, etc all could have been seen back then???? Did you see all of that coming?? Overall, the deal was a good one, maybe not a GREAT one. If you always go for the GREAT one, you may sit forever waiting. 20% pay raise over 3 years, increase in DC fund %, a 3 year contract, guaranteeing 50 seaters being parked (over 300 had hard leases through 2015, even with mx issues coming up, and if gas did plummet, maybe those 50 seaters would be more acceptable for management, but now they have to go), 717s coming in (they may not have had the 50 seaters stayed---too much capacity). There were also better work rules including sick leave (100 free hours per year), increase in pay per day for vacation and training, and scope tightening on the AF/KL JV along with domestic (AK plus DCI). So, it was a good idea at the time.

Do you have the winning Powerball numbers for this Weekend? You can't win if you don't play......

I'd probably take a 20% raise every 3 years, how about you?


Bye Bye---General Lee
 
Last edited:

redflyer65

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By my rough math, Delta has announced nearly $2.5 billion in spending projects since this time last year, yet the pilots got a paltry raise. No wonder so many are upset over there and pushing for DPA.

IMO, the pilots of Delta deserved more, a lot more. But their own paranoia and union leaders (I use that term loosely) sold them own. Now the corporation benefits. Bravo.

WAFJ.

Wow. A very concise, factual representation of how the DL pilots got played by RA (or 60%, the other 40% knew better). Are the DALPA guys washing Anderson's car on the weekends too?

I'm sure Song 2 is right around the corner...funded by the DALPA contract.
 

General Lee

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Wow. A very concise, factual representation of how the DL pilots got played by RA (or 60%, the other 40% knew better). Are the DALPA guys washing Anderson's car on the weekends too?

I'm sure Song 2 is right around the corner...funded by the DALPA contract.

Let's see how you guys do with GK. I don't think any raises are coming, but I hope so! Keep bringing the bar up, if you can...... GK sounds like he wants to transform the airline back into a LCC. Fingers crossed for you guys!


Bye Bye---General Lee
 

labbats

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This message is hidden because General Lee is on your ignore list.
 

redflyer65

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Let's see how you guys do with GK. I don't think any raises are coming, but I hope so! Keep bringing the bar up, if you can...... GK sounds like he wants to transform the airline back into a LCC. Fingers crossed for you guys!


Bye Bye---General Lee

Why is it that when we are talking about Delta and the financials of Delta you HAVE to bring up Southwest and GK? You see a pattern here? Why would you be worried about SW or our contract? Makes no sense...


I will give you some insight to the ongoing negotiations....really inside info so keep it under your hat. We won't be voting in larger RJs. Please keep that to yourself.
 

General Lee

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Why is it that when we are talking about Delta and the financials of Delta you HAVE to bring up Southwest and GK? You see a pattern here? Why would you be worried about SW or our contract? Makes no sense...


I will give you some insight to the ongoing negotiations....really inside info so keep it under your hat. We won't be voting in larger RJs. Please keep that to yourself.

No, you like to bring up extra things that YOU think DL pilots should have gotten in the latest contract. It's just not that easy. Sure, had the DL pilots known exactly where gas was going, that interest rates would stay low, and everything was going to be "peachy", maybe the negotiators would have tried for more. Maybe it would have been better. Things could have gotten worse (an extra War in the ME and gas shooting up, etc) and that 20% raise could have been 5% at best. You never know. I bring up your negotiations because they are next, and we know GK is itching to get back to the LCC model. We hope you guys hold the line, but you aren't negotiating from strength, rather a defensive model. And, you may not get large RJs flying for you, but you did lose 100 seaters (717s) and 17 cities you won't return to. See how this ties in with comparisons to the DL contract? Let's see how you guys do when you are done. Good luck.


Bye Bye---General Lee
 

buxflyr

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We're all screwed if the code sharing continues to increase. Delta, American and United.

You can bet that this will potentially be one of the greatest threats to US based pilots in the coming years.
 

General Lee

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We're all screwed if the code sharing continues to increase. Delta, American and United.

You can bet that this will potentially be one of the greatest threats to US based pilots in the coming years.


There has to be limits, and percentages attached. You can't always fly "Intra China" to get passengers to Shanghai or Beijing and then onwards to the USA. Sometimes those percentages are not adhered to, and that needs to be watched. Monitoring agreements is important, because codeshares and JVs will need to happen to compete on a GLOBAL scale. Businessmen and corporations want simplicity in travel, not constant changing of planes and airlines. You can't fly a US legacy to Shenzen, China, yet. So in the meantime, you have to codeshare, be a part of an alliance, or have a JV. Same with a Chinese citizen wanting to fly to Colorado Springs. But as I stated, any agreements have to be watched for compliance, which doesn't always happen.


Bye Bye---General Lee
 

jonjuan

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New day, new farming out of flying for the private....

http://finance.yahoo.com/news/gol-linhas-delta-expand-codeshare-145321280.html


Gol Linhas, Delta expand codeshare agreement
GOL Linhas (GOL) announced the implementation of GOL codeshare on Delta's (DAL) flights from Brasilia to Atlanta. GOL will now sell Delta's international tickets through its sales channels. Over the next months other markets will be included in the codeshare, including all Delta flights between Brazil and the United States, as well as key connecting markets operated by the U.S. company, GOL stated.
 
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