Delta Air Lines, Inc. (NYSE:DAL) Q2 2019 Earnings Conference Call Transcript

Jul 11, 2019 • 10:00 am ET

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Delta Air Lines, Inc. (NYSE:DAL) Q2 2019 Earnings Conference Call Transcript

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Presentation
Executive
Ed Bastian

our history, just over the last 30 days.

With our people consistently delivering best-in-class travel experiences for our customers, we are seeing our net promoter scores reached new heights and our brand affinity growth.

We have the world's most valuable airline brands, one that's mentioned not just among the best global airlines, but also alongside top consumer brands. The ascent of our brand is a sign of the trust and preference we are earning from our customers through operational excellence and unmatched service. Our people are the very best in the business and they are Delta's strongest competitive advantage. They keep climbing, improving year-after-year, because our customers count on us to connect them to moments that matter around the world every day. And not only do they serve our customers, but they continue to get back to the communities, where they live, work and serve.

Earlier this week Delta was recognized by the American Red Cross as the number one corporate blood owner in the country for the second year in a row. This is a fantastic accomplishment, and I want to say congratulations and thank them for their service. So far this year, we have accrued $739 million towards next Valentine's Day profit sharing.

Across the business, we are harnessing Delta strength in quality and innovation to drive improvements in the customer experience, stronger customer loyalty and profitable global growth. Delta's financial foundation and cash generation are allowing us to sustainably invest across the business at a level no competitor can match.

During the first half of the year, we generated $2.5 billion in free cash flow more than what we produced in all of 2018, positioning us to achieve $4 billion in free cash flow in 2019. We are investing for the future to ensure that our customer experience and brand continue to elevate, while ensuring our employees have the right tools to continue to provide best-in-class customer service. One example is the transformation of our domestic narrow-body fleet, which is exciting, and Glen will cover the substantial benefits we expect us to deliver to our customers as well as to our owners.

On the airport front, we will invest over $12 billion in terminal facilities that are key hubs over the next five years. This fall we will achieve a major milestone in New York as we open Concourse G, the first of four new Delta concourses included in our $3.9 billion project at LaGuardia. By taking control the construction process, we've been able to build a more efficient facility focused on meeting the needs of our customers and by utilizing our investment grade balance sheet that facility will have a long-term competitive cost advantage.

We're also making meaningful investments in our customer-facing technology. Delta.com is one of the top e-commerce sites in the US and we continue to add functionality, not only to our site, but also to our Fly Delta app. These are our fastest growing distribution channels with the highest customer satisfaction, as more