delta_8k-ex9901.htm

Delta Air Lines:
Challenging Times Require Aggressive Action

Ed Bastian

President and Chief Financial Officer

June 18, 2008

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.

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.

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.”

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.

Mitigate $4 billion impact
from fuel run-up

Recreate business model
through strategic
initiatives

Maintain a strong
liquidity position

Only the strongest will survive
the industry crisis

Fuel and economy present
serious challenge to cash flow

Delta’s Action Plan

Unprecedented fuel prices

Delta - Challenging Times Require Aggressive Action

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

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)

Passenger
Revenue
Increases

$1.3B

Fuel Hedging
Benefits

$0.8B

Revenue/Cost
Initiatives

$0.6B

• Strong top-line
growth

• RASM gap to the
industry closed a
year ahead of
schedule

• 13% reduction in
domestic capacity for
2H08

• Benefits from 3+
years of international
network investment

• Multi-year hedge strategy
implemented

• 2008 - 2010 hedge portfolio
valued at $1.5 billion

• Cost discipline and
technology

• Revenue
improvements from
increased passenger
fees and growth in
cargo/ancillary
businesses

• Continued benefits from international
expansion / domestic rationalization

• Recreate business model

• Over $1B in merger synergies

• Transatlantic JV

Gap to
Address

$1.1B

Aggressive Actions Cover $3 Billion of $4 Billion Fuel Impact

Capacity Change

Summer 2005 - Summer 2008

RASM improvements driven by domestic capacity reductions, international network
investment, and aggressive yield management

Delta Is Delivering Strong Top-Line Growth

RASM as % of Industry
Average 2005 - 2008

Capacity Change

2H 2008 vs. 2H 2007

-13%

14%

-4%

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%

$2.76

$2.88

$3.30

$3.45

$3.05

Total value of
$1.5 billion

• Hedges also bolster cash balance - approximately $900 million of margin on fuel
hedges held in cash at May 31

Note: Hedge position as of June 13, 2008

Long-Term Fuel Hedge Strategy in Place

Domestic capacity
reductions

Employee programs

Aggressive changes to
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

• Over 4,000 employees chose to participate in
voluntary reduction programs - double the original
goal

• $200 million in annual savings

• Domestic capacity down 13% in 2H08 with
flexibility to do more

• Committed to taking out all costs from reduced
flying

• Mainline ex-fuel costs flat year-over-year by 4Q

Initiatives Target All Areas Of Delta’s Business

Expecting A Profitable June Quarter

Current

Operating Margin

3 - 4%

3 - 5%

Fuel Price, all-in

$3.18

$3.13

Mainline Non-Fuel CASM (vs. PY)

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

Fuel Prices Require Incremental Capacity Reductions

Targeting flat mainline ex-fuel CASM by fourth quarter

Commitment to pulling out associated costs

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

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

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

• 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

• Significant synergies resulting from transaction

Unique

Asia slot portfolio

& 787 order book

Optimized &
enhanced Tokyo
hub

1952 US-Japan treaty
governs air-service rights

Extensive domestic
network

KLM JV

4-way JV initiated

Largest immunized JV with
31% of transatlantic
capacity

Air France JV

Asia & Canada

Diversified global
network

Capital intensive to
replicate organically

Europe, Middle
East, Africa &
Latin America

100-seaters and
large widebodies

Right plane for the
right route

Capital intensive and
limited order books

Small and mid-
sized aircraft

>$2B cost
savings in
Chapter 11

Best-in-class CASM

Requires Chapter 11
restructuring

>$2B cost
savings in
Chapter 11

Northwest Strength

Difficult to Replicate

Delta Strength

Strategic Advantages Cannot Be Easily Replicated

Delta / Northwest Combination Creates A Powerful Competitor

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

File Hart-

Scott-Rodino

with
Department of
Justice and
make other
regulatory
filings

Complete
regulatory
process

Shareholder
approval

Close
merger

Begin
integrating
airlines

April 2008

Fall/Winter 2008

INTEGRATION PLANNING

Merger On Track to Close By The End of 2008

Mitigate impact from
fuel prices

Strengthen foundation
with Northwest merger

Maintain a strong
liquidity position

Increased revenues, improved productivity and
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

Strong operating cash flows allow for only
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

Non-GAAP Reconciliations

Length of Haul Adjusted PRASM

Operating Margin

Mainline Non-Fuel CASM