Speaker: Leading through Challenging Times

by Sheila Ryan

Hank Halter, CFO, Delta Airlines, addressed Buckhead Rotary Club Monday. He described the intense industry competition and the impact of Delta's merger with Northwest in October 2008. With the merger of Northwest, Delta has 1,000 flights per day out of Atlanta serving over 250 locations. Delta now employs over 25,000 in Georgia.

Halter says the merger was a good decision since Delta and Northwest only overlapped on 12 routes. Now the airline is #1 to the most world destinations and has a leading presence across the globe with over 242 billion seat miles.

Delta’s financials are solid. With the merger, Delta has been able to re-negotiate over 400 contracts over the last year. The airline has also been able to build the highest liquidity balance of all airlines. Although revenues are down 15-20% over last year, they are getting better. Delta is the lowest cost provider per mile at 7.2 cents unit cost (that's 7.2 cents per passenger per mile).

Delta has established four tenets for their strategic framework.

1. As merger synergies are executed, they will realize $2billion in annual benefits.
2. The airline has right-sized operations to keep capacity high
3. They are driving the revenue premium
4. They will deliver a solid balance sheet
5. In addition to these tenets, Delta is focused on employees and making sure their employees are satisfied so they deliver a good travel experience to their customers.