Using Delta Airlines Value line report:

Value DAL using the Dividend Discount Model

DELTA AIR LINES NYSE-DAL RECENT PRICE 38.25 RADIO 14. 2(Taking NUF) RELATIVE PERATO 0.88 BYD Nil VALUE LINE 307 TIMELINESS 3 Raised 4/1621 High: 13.2 Low: 12.3 120 50.2 52 8 56.8 51.3 63.4 175 33.4 29.8 Target Price Range SAFETY 2025 2026 2027 Raised /29/14 LEGENDS BOX "Cash Flow"BE TECHNICAL 4 Poised 420/22 Relative Price Birangth 160 BETA 1.60 [1.00 = Market) Shaded and haleaks movies 120 100 18-Month Target Price Range Low-High Midpoint (% to Mid) -50 $31-409 2025-27 PROJECTIONS -30 Price Gain Ang1 Tata (-160%) -20 (+70% 16% % TOT. RETURN 4/22 -15 Institutional Decisions WL AFAITH 202021 Percent To Buy 90 shares 80 - traded 30 - 372 E Hi:100) 409288 408198 404409 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150 2016 2017 2018 2019 2020 2021 2022 2023 VALUE LINE PUB. LLC 25-27 87 01 66.63 32 65 35.80 36104 41.54 41.07 44.36 43.91 52.27 54.25 58.32 66.36 73.13 26.79 46.71 72.20 80.30 Revenues per sh 92. 75 6.48 5.50 1.10 3.54 3.21 3.68 5.15 5.54 7.12 B.21 9.19 1.44 d7.09 d.94 6.10 70 "Cash Flow" per sh 12.40 02 1.08 d1.08 d1.29 1.41 1.83 3.14 331 4.61 493 5.65 7.31 #10.76 14.08 2.70 6.15 Earnings per sh A 12 30 45 1.02 131 151 40 Mil Div'ds Deci'd per sh D 1.50 115 27 42 82 31.91 2019 2932 4040 42.16 34.62 2789 4364 60.40 67249 7520 72/00]|750 Gross Equipment per sh 35.18 1.21 .31 1.07 d1.65 12.50 13.67 10.68 13.93 16.21 19.67 20.13 23.89 2.40 6.68 8.00 15.10 Bod 20.00 197.34 2874 695.14 783.95 834.72 845.26 851.40 851.44 825.26 778.78 730.74 707.20 679 94 64277 638.18 634197 837.00 635.00 Common Shs Outsig 17.4 74 6.6 5.5 11.4 1010 8.1 10.1 9.6 7.8 NMF Bold Figures are Arg Ann'1 PE Ratio 160 92 47 41 36 36 60 50 43 51 NMF Relative PE Ratio 55 1.0% 1.6% 2.0 2.4% 2.7% Avg Ann'l Div'd Yield 23% CAPITAL STRUCTURE as of 3/31/22 3867 0 37773 40312 40704 39639 41244 44431 47007 17026 20839 46000 51000 Revenues (5mill) 4 57500 Total Debt $25657 mill. Due in 5 Yrs $14680 mil LT Interest $1060 mill. 810% 838% 84 7% 84.9% 84.6% 85.6% 85 5% LT Debt $24441 mill. 650 690% 80 0%% 820% Load Factor 650% (98% of CapT) 11.4% 136%% 17.9% 20.6% 21.9% 206% 17.9%% 19.3% NMF NMF 11.0% 15.0% Operating Margin 20 0% Leases, Uncapitalized Annual rentals $744 mill 1585 0 1658.0 1771.0 18350 1202.0 2235.0 202910 25810 23120 19380 2165 2260 Depreciation ($mill 2700 1562 0 2729.0 280010 27080 40170 35680 39170 47710 d6 839 62698 1720 3900 Net Profit (Smill) 5000 Pension Assets - 12/21 $20 bill. Oblig.$21 bill. 1.0% - 17.4% 36.8% 33.8% 34.5% 23.4%% 232% NWE NMF 20.0 230% Income Tax Rate 23.0% Pild Stock None 4.2%% 7.2% 69% 9.1% 10.1%% 8.7%% 88%% 102% NME NMF 4.7% 7.6% Nel Profit Margin 27% 11082 9795.0 8561.0 67650 6201.0 6592.0 82510 8:710 27426 25138 24000 24000 Long-Term Debt (Smill) 15800 Common Stock 641 076 463 shs 2131 11643 88130 10850 12287 13910 13687 15358 15340 38340 5100 9600 Shr. Equity (Smill 14250 21.2 144% 180% 224% 22.8% 18.4% 186% 20.3% NME NMF 6.0% 11.5% Return on Total Cap'l 28.5% 23.4% 31.8% 34.2% 327% 25.7%% 28.6%% 31.1% NMF 35.5% 4015% Return on She Equity 35.09 MARKET CAP: $24.5 bilion (Large Cap) 22.6% 289% 30.9% 25.6% 20.4% 220% 247% NHE NMF MHF WWF Retained to Com Eq CURRENT POSITION 2021 3/31/22 4% 9% 10% 13% 20% 23%% 21% NMF NMF Mil All Div'ds to Net Prof 19% Cash Assets 14096 11319 9935 BUSINESS: Delta Air Lines, Inc. is a major international airline with leased) Acquired Northwest Airlines, 10/08. Has appx. 91,224 em- Receivables 2404 2039 en airport hubs. Provides service to every major d mestic and in- ployees. BlackFlock owns 8.9% of common stock: Vanguard nventory Other 1190 mational market. The revenue mix in 2021 consisted of the folow- 10.4%, Officers & Directors, less than 1% (4/22 proxy). Non- Current Assets 17404 ing passenger, 78%% cargo, 3%%; other, 22%%. Revenues by geog executive Chairman: Francis S. Blake. CEO: Edward H. Bastian Accts Payable 4240 4810 raphic region United States, 82%%; Atlantic, 8%; Pacific, 2%; Latin Incorporatedt DE. Address: P.O. Box 20706, Atlanta, GA 30320- Debt Due 1782 1116 America, 8%. Fleet (at 12/31/21): 1200 aircraft (627 owned, 573 6001. Telephone: 404-715-2600. Internet: www.delta.com. Other 11355 18134 Current Liab. Delta's recovery from the pandemic seat mile is forecast to be up 12% from the has been taking off. Adjusted operating 2019 level despite capacity being only 84% ANNUAL RATES Past Past Esi'd 19-21 of change [per shi 5 Yrs. revenue of $8.2 billion (excludes third- recovered due to labor shortages. Although Sales 6.0% party refinery sales) was down 21% versus demand ought to remain robust, as more cash Flow 2.5% 10.0% -5.5% the 2019 first quarter, on 17% less capaci- U.S. industry capacity comes on line, Eamings -2715% Jividends 30 0% ty. The Omicron variant hindered results prices and yields should normalize. Delta Book Value 23.09 in January and early February, but after has seen no impact from the war in Uk- Cal- QUARTERLY REVENUES ($ mil.) the surge abated, this enabled March to be raine, and fewer restrictions in major endar Mar.31 Jun.30 Sep.30 Dec.31 the first month in two years of positive European and Latin American markets unit revenue compared to three years ago ought to unlock demand for long-haul 2019 10472 12536 12560 11439 47007 2020 8592 1468 3062 3973 with passenger revenue per available seat travel. Too, market share should improve 17095 mile (PRASM) 2021 4150 7126 9154 8470 29809 rising 1%. Domestic as many competing routes have been 2022 9348 12201 13000 10751 46000 demand has been most improved in the permanently ended. However, regions un- 2023 11200 13:300 1 13650 12850 51000 leisure category as more vacationers feel der more strict lockdowns such as China EARNINGS PER SHARE A comfortable flying again. Domestic corpo- and Japan will likely continue pressuring endar Mar.31 Jun.30 Sep.30 Dec.31 Year rate sales are also turning a corner, as of- PRASM in the Pacific theater until bor- 2019 2.35 2.32 fices reopen and face-to-face relationships ders fully reopen. Higher fuel, salary, 96 1.70 7.31 2020 d4.43 13.30 12.53 are rebuilt. As a result, that metric d10.76 maintenance, and selling-related costs will 2021 03 55 di.07 30 22 reached 70% of pre-pandemic levels in the probably remain a headwind for the re- 2022 di.23 1.50 14.08 quarter versus 50% in the year-ago period. mainder of the year, but DAL's adjusted 2023 40 2.25 2.10 1.40 6.15 Premium products were once again a earnings should turn positive in the sec- `QUARTERLY DIVIDENDS PAIDO bright spot, with domestic revenue here ond quarter and remain so for 2022. Mar.31 Jun.30 Sep.30 Dec.31 rising back fully to pre-pandemic levels. These neutrally ranked shares may 2018 .305 303 35 1.31 Finally, sales from the loyalty program in- interest patient investors. Near-term 2019 35 .35 4025 4025 1.51 creased 20%, while cargo revenue trended challenges aside, we see a compelling 2020 4025 403 higher on continued yield strength. entry point for those with a long-term in- 2021 The near-term outlook is mixed. vestment horizon. 2022 Second-quarter total revenue per available Kevin Downing May 20, 2022 A) Diluted egs. Egs. may not sum due to :23 25ish. any's Financial Strength rounding. All data are pro forma. Next earnings C) In milions. Stock's Price Stability 30 report due mid-July. Dj Initiated quarterly dividend 5/8/13. Dividend Price Growth Persistence 50 (2) Incl intangibles. In '21: $18 75 bill., suspended 3/20 Earnings Predictability 2492 Value Ling, Inc. All rights reserved. Fa material as obtained from sou THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. THE To subscribe call 1-800-VALUELINE