UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934 

Date of Report (Date of earliest event reported): March 10, 2020 

DELTA AIR LINES, INC.(Exact name of registrant as specified in its charter)

 Delaware 001-05424 58-0218548

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 P.O. Box 20706, Atlanta, Georgia 30320-6001

(Address of principal executive offices) 

Registrant’s telephone number, including area code: (404) 715-2600 

Registrant’s Web site address: www.delta.com 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the followingprovisions (see General Instruction A.2. below): ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class Trading Symbol Name of each exchange on which registered

Common Stock, par value $0.0001 per share DAL New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐       

   Item 7.01 Regulation FD Disclosure.

Delta Air Lines, Inc. (“Delta”) today issued a Delta News Hub story announcing actions to address the financial impact of COVID-19. A copy of this story isfurnished as Exhibit 99.1 to this Form 8-K.

 In addition, Ed Bastian, Delta’s Chief Executive Officer, Glen Hauenstein, Delta’s President, and Paul Jacobson, Delta’s Executive Vice President and Chief

Financial Officer, today will present to the J.P. Morgan Industrials Conference via webcast at 8:00 a.m. Materials to be used in conjunction with the presentationare furnished as Exhibit 99.2 to this Form 8-K.

 In accordance with general instruction B.2 of Form 8−K, the information in this report (including the exhibits) that is being furnished pursuant to Item 7.01 of

Form 8−K shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act, as amended, or otherwise subject to liabilities of thatsection, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth in such filing.This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.

Statements in this Form 8-K and the attached exhibit 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. Allforward-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, thepossible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; disruptions in our information technologyinfrastructure; our dependence on technology in our operations; the performance of our significant investments in airlines in other parts of the world; therestrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, naturaldisasters and seasonality on our business; the effects of an extended disruption in services provided by third parties; the cost of aircraft fuel; the availability ofaircraft fuel; failure or inability of insurance to cover a significant liability at Monroe’s Trainer refinery; the impact of environmental regulation on the Trainerrefinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation andbrand if we are exposed to significant adverse publicity; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry;interruptions or disruptions in service at major airports at which we operate; the effects of extensive government regulation on our business; the impact ofenvironmental regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty ineconomic conditions and regulatory environment in the United Kingdom related to the exit of the United Kingdom from the European Union; and the effects of therapid spread of contagious illnesses.

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 Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019. Caution should be taken notto place undue reliance on our forward-looking statements, which represent our views only as of March 10, 2020, and which we have no current intention toupdate.

Item 9.01 Financial Statements and Exhibits. (d)  Exhibits. Exhibit 99.1 Delta News Hub Story dated March 10, 2020 titled “Delta Actions to Address Financial Impact of COVID-19” Exhibit 99.2 Presentation Exhibit 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL     2  

  

SIGNATURES  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by theundersigned hereunto duly authorized.   DELTA AIR LINES, INC.

      By:  /s/ Paul A. Jacobson               

Date:  March 10, 2020Paul A. Jacobson, Executive Vice President and Chief Financial Officer

   

Exhibit 99.1  

 CONTACT: Investor Relations Corporate Communications  404-715-2170 404-715-2554, media@delta.com

 

Delta Actions to Address Financial Impact of COVID-19   · Top priority is protecting the health and safety of customers and employees  · In response to demand declines, company will remove 15 points of system capacity  · Undertaking cost reduction and cash flow enhancing initiatives to protect financial position In addition to the significant efforts underway to protect the health and safety of its customers and employees, Delta Air Lines (NYSE: DAL) is announcingadditional steps to address the financial impact of the COVID-19 (coronavirus) outbreak. “In the weeks since COVID-19 emerged, Delta people have risen to the challenge, taking every possible action to take care of and protect our customers during astressful time,” said Delta CEO Ed Bastian. “As the virus has spread, we have seen a decline in demand across all entities, and we are taking decisive action to alsoprotect Delta’s financial position. As a result, we have made the difficult, but necessary decision to immediately reduce capacity and are implementing costreductions and cash flow initiatives across the organization.” Bastian added, “Over the last ten years, we’ve transformed Delta by strengthening the balance sheet, diversifying our revenue streams and enhancing operationaland financial flexibility. The environment is fluid and trends are changing quickly, but we are well positioned to manage this challenge and are taking actions toensure that Delta maintains its leadership position and strong financial foundation.” CapacityTo align capacity with expected demand, Delta is reducing system capacity by 15 points versus its plan, with international capacity reduced by 20-25 percent, anddomestic capacity reduced by 10-15 percent. The company will continue to make adjustments to planned capacity as demand trends change. By region, reductions include: 

Entity% of Total

FY19 RevenueCapacity Reductions

Pacific 6% Down 65%Transatlantic 15% Down 15-20%Domestic 72% Down 10-15%Latin 7% Down 5%  

  1  

 

 ExpensesDelta is undertaking cost reduction initiatives, including:

· Instituting a company-wide hiring freeze and offering voluntary leave options· Parking aircraft, and evaluating early retirements of older aircraft

 In addition, the recent fuel price decline provides approximately $2 billion of full-year expense benefit. Balance Sheet and Cash FlowDelta has also made the following cash flow decisions:

· Deferring $500 million in capital expenditures· Delaying $500 million of voluntary pension funding· Suspending share repurchases

 Delta has an investment-grade balance sheet, providing ready access to capital markets and bank financing. The company recently announced the issuance of $1billion of secured aircraft debt at a blended rate of 2.09 percent and intends to use the proceeds to fund $1 billion of scheduled debt maturities in March. Delta’s leverage ratio is at the low-end of its targeted range of 1.5 to 2.5 times adjusted debt to EBITDAR. Liquidity is strong and expected to be at least $5 billionat the end of the March quarter. In addition, Delta has approximately $20 billion of unencumbered assets, including $12 billion in aircraft. About DeltaDelta Air Lines (NYSE: DAL) is the U.S. global airline leader in products, services, innovation, reliability and customer experience. Powered by its 90,000 peoplearound the world, Delta continues to invest billions in its people, delivering a world-class travel experience and generating industry-leading shareholder returns.With its constant drive to invest, innovate and expand, Delta today is the No. 1 U.S. global airline by total revenue. Forward Looking StatementsStatements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategiesfor the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve anumber of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategiesreflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of accidents involvingour aircraft; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence ontechnology in our operations; the performance of our significant investments in airlines in other parts of the world; the restrictions that financial covenants in ourfinancing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; theeffects of an extended disruption in services provided by third parties; the cost of aircraft fuel; the availability of aircraft fuel; failure or inability of insurance tocover a significant liability at Monroe’s Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuelstandard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adversepublicity; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at majorairports at which we operate; the effects of extensive government regulation on our business; the impact of environmental regulation on our business; thesensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment inthe United Kingdom related to the exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses. Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in ourSecurities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019.  Caution should be taken not toplace undue reliance on our forward-looking statements, which represent our views only as of March 10, 2020, and which we have no current intention to update.   

  2  

 

Exhibit 99.2  

Delta Air Lines J.P. Morgan Industrials Conference March 10, 2020

 

 

Safe Harbor 2 Statements in this presentation that are not historical facts, including statements regarding our estimates, expectations, be lie fs, intentions, projections or strategies for the future, may be "forward - looking statements" as defined in the Private Securities Litigation Re form 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 statem ents. These risks and uncertainties include, but are not limited to, the possible effects of accidents involving our aircraft; breaches o r s ecurity lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our op erations; the performance of our significant investments in airlines in other parts of the world; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and s eas onality on our business; the effects of an extended disruption in services provided by third parties; the cost of aircraft fuel; the availab ili ty of aircraft fuel; failure or inability of insurance to cover a significant liability at Monroe’s Trainer refinery; the impact of environmental reg ulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key emp loy ees; damage to our reputation and brand if we are exposed to significant adverse publicity; the effects of terrorist attacks or geopolitical co nflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate; the effect s o f extensive government regulation on our business; the impact of environmental regulation on our business; the sensitivity of the airline in dustry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in t he United Kingdom related to the exit of the United Kingdomfrom the European Union; and the effects of the rapid spread of contagious ill nesses. Additional information concerning risks and uncertainties that could cause differences between actual results and forward - lookin g statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10 - K for the fiscal year end ed December 31, 2019. Caution should be taken not to place undue reliance on our forward - looking statements, which represent our v iews only as of March 10, 2020, and which we have no current intention to update.

 

 

3 Current Environment • Taking every precaution to protect the health and safety of our customers and employees − Extended broad - based travel waiver through April 30 • COVID - 19 is materially impacting revenue as bookings decline and ticket cancellations accelerate • Decisive actions underway to protect Delta’s financial foundation − Capacity – Reducing planned capacity by at least 15% and prepared to do more − Expenses – Capacity - related and incremental cost reductions of $1.8 billion in 2020, and approximately $2 billion of fuel price benefit at current prices − Balance Sheet and Cash Flow – Incremental cash flow and liquidity initiatives of over $3 billion • Delta maintains a strong financial position with investment - grade balance sheet and ample liquidity − Prioritizing free cash flow, investment - grade balance sheet and a minimum of $5 billion in liquidity for full year 2020 • Withdrawing March quarter and full - year financial guidance − Currently expect March quarter unit revenue to be down mid - to high - single digits

 

 

Entity Demand Commentary Capacity Reductions Pacific 6% of total revenue Greatest impact driven by government travel restrictions 65% • Suspension of China • Significant reductions in S Korea and Japan Transatlantic 15% of total revenue Largest impact in Italy, growing impact in France with corporate close - in softness 15 - 20% • Suspension of Milan and Tel Aviv • Reduced service to Rome and Mumbai • Delay of seasonal services and ad hoc cancels Domestic 72% of total revenue Close - in booking weakness and increased cancellation rates 10 - 15% • Reductions in high frequency markets • Removal of utilization flying, day of week cancels Latin 7% of total revenue Limited impact at this time; monitoring closely 5% • Cancelling specific weak demand flights Flexible Approach to Managing Capacity • Reducing system capacity by at least 15 points versus scheduled − International capacity reduced by 20% to 25%, Domestic reduced by 10% to 15% • Parking widebody and narrowbody aircraft and evaluating early retirements of older aircraft • Prepared to take more aggressive actions as needed with significant flexibility on summer capacity 4 Note: Total revenue percentages are based on actuals for full year 2019; all capacity reduction percentages are versus schedu led

 

 

Strong Foundation Positions Delta Well For Current Challenge 5 − Identified $1.8 billion of incremental cost reductions including: − Capacity - related savings − Company - wide hiring freeze and voluntary leave options − Maintenance savings from grounded aircraft − Recent fuel price decline provides approximately $2 billion of full - year expense benefit − Profit sharing contributes to variable cost structure − Loyalty program and MRO provide stable revenue streams − Deferring $500 million of capital expenditures, $500 million of elective pension funding and suspending share repurchases − Investment - grade balance sheet provides ready access to capital markets and financing − Expecting at least $5 billion liquidity at March quarter end − Leverage at low - end of debt to EBITDAR target range of 1.5x to 2.5x − Unencumbered collateral of approximately $20 billion, including $12 billion in aircraft, provides flexibility − Pension funded status of 75% with no required contributions until 2025 under Airline Relief Revenue and Expense Balance Sheet and Cash Flow Note: Pension funded status of 75% is as of December 31, 2019

 

 

Long - term Opportunity Unchanged by Near - term Challenges 6 Powerful Brand With Industry - Leading Returns Strong Partner Portfolio and Global Scale Unmatched Competitive Advantages Proven Track Record of Execution & Reinvestment Commitment to Carbon Neutrality and Environmental Sustainability