Delta Air Lines, Inc. (DAL) Earnings Call Transcript & Summary

And now it is my pleasure to introduce to you our keynote speaker. Innovation at its core has always spurred the -- innovation at its core, if we could keep going, has always spurred the evolution of everyday experiences and changed people's lives for the better. When a new idea successfully disrupts the status quo, innovation itself is often redefined, along with the concept of how innovation is best fostered. Think about it. In the '70 and '80s, we saw brilliant college dropouts creating world-changing technology in garages and basement labs. Innovation in the '90s and early 2000s exploded with the dot-com boom that birthed many major digital empires. Now the start-up culture yielded fledgling companies that have taken advantage of the flourishing venture capital ecosystem. On the CES stage, you frequently see long-established companies in traditional industries evolving with technology as a driver. Delta Airlines is no exception and is truly acting as a disruptor in its industry. Delta Air Lines has been around for nearly 100 years. Over the past decade, it has showed a relentless focus on meeting the needs of its customers and working to solve the challenges of operating a global line -- global airline in a volatile and certainly uncertain world. Organizations globally appraise Delta for its efforts and commended its strategy of putting its people and its culture at the center of its business. I know some of you in this room experienced that firsthand when you picked up your CES badge at Delta terminals in New York, San Jose and Seattle. It's a kind of thoughtful touch I've experienced time and time again as a Delta customer, at least twice every week, that keeps me coming back home and to work and back to Delta. So I'd like to introduce to you, Delta Air Lines' CEO, Ed Bastian, to help us kick off CES 2020. [Presentation]

Now I'd like to introduce to you -- ladies and gentlemen -- no. It's okay. [Presentation]

Okay, folks. This time I really mean it. I want to introduce to you the person you came to see, Delta Air Lines' CEO, Ed Bastian, to help us kick off CES 2020.

Thank you, Gary.

Thank you. It's so great to have you here.

Thanks for having me. It's great to be out here.

So I wanted to start you off with a really silly question, like, what is an airline executive doing coming to CES?

Well, that's a great question, Gary. And first of all, we are honored to be at CES, so thank you for this invitation. But you do ask a great question. Why is an airline here delivering the opening keynote at CES? And to answer that question, you have to look back more than a century, when technological innovation brought the life-changing magic of power flight to our world. And we're here today because we still think that the gift of flight is the ultimate innovation. It allows people to connect across vast distances. It opens up opportunities that simply aren't possible without a human connection. And it brings the world closer at a time we need to be closer more than ever before. Now most of you flew here to Las Vegas, quickly and safely. And whether you flew an hour from LA or 20 hours from Shanghai, it was the magic of flight that brought all of us here together. It wouldn't be possible to be here without flight. And as aviation soars into its second century, we see technology as the tool to advance our mission of connecting people and creating opportunities. Now we're not in the business of chasing shiny objects or technology for the sake of being cool. At Delta, our focus is on applied innovation. And we're dedicated to solving your travel problems and making your journeys and your lives easier and less stressful. And at Delta, we have a vision for getting there. So today, you're going to see what travel will look like in 2025 and the steps that Delta is taking to bring it to life. So let's get started. [Presentation]

Now while technology is there to serve our customers, frankly, it's meaningless without the power of the finest airline professionals in the world, the 90,000 people at Delta Air Lines. And I'm proud and humbled to represent our Delta family, who's here with me today. Thank you for what you do for all of us. After the dark days of September 11, Keep Climbing was our rally cry as we rebuilt our company, and it was the power of the Delta people, their passion, their dedication and their ingenuity that rescued our airline. And we have come a long way since. Today, Delta is the largest, most awarded airline in the world, thanks to our people who are the Delta difference. And we know there isn't a silver bullet to creating great airline experiences, but what we do know is that humanity is a great North Star. We've had to build the tools and the consumer trust to take us where we want to go. In the past 5 years, we've invested billions to turn Delta's technology from what had been a vulnerability to an award-winning digital advantage. And what has that done? It has given us tools like real-time bag tracking, biometrics for faster boarding and shorter lines. And we get a lot of fresh ideas through partnerships with entrepreneurs and with start-ups. You're going to be seeing some of that today. We're working with start-ups who are pushing the envelope, like CarePod, where they're working to carry and monitor our pets safely and humanely from gate to gate. And that's my little guy up there. His name is [ Albert ]. Isn't he a cutie? We're also exploring a new way to keep airplane cabins clean, with a start-up called Vital Vio. They make antimicrobial lights that safely and constantly sanitize surfaces without impacting people. And now here's another cool idea that we're implementing. We're recycling plastic waste into the blankets that we have on board. In fact, we put one of those recycled blankets in every seat for you today, for you to keep and take home and use here because it can get chilly in this auditorium. And 2 of the blankets have an extra surprise in them, a pair of tickets to fly in Delta One, our most luxurious cabin with flatbed seats, to any destination we serve worldwide. If that's not magic, I don't know what is. So take a minute and look inside your blankets. Let's see who the winners are. Looks like a big slumber party out there. Do we have the winners? There's 2 of them. Where are they? I heard a scream. Stand up. Who's got it? Stand up. And do we have another? Where's the other one? I heard -- I hear somebody yell. There you go. Congratulations. That's very cool. Enjoy your travel on Delta One. I love giving tickets away to see the world. It truly is one of the perks of my job. Not many jobs you have like that, right? Thank you. Because we carry 200 million people across the world every year, the opportunity for our innovations to have meaningful impact is tremendous. Here's an interesting fact. We engage with 600,000 customers every 15 minutes. That's the population of Vancouver every hour. So when we envision what the future of air travel looks like, we have to think big, start small and then scale very fast. The opportunities to better connect people across the world are truly endless, and technology will help us do it even better. So I'd like to spend a minute talking about the fundamentals of our business. We're proud that we've become the most reliable airline on the planet. We've canceled cancellations. We've eliminated involuntary bumping. We've created the most effective baggage handling system on the planet. But we're not satisfied with meeting those basic expectations. Oh, no. We want to exceed them. And that's what sets Delta apart. A great example is the security line. The amount of time that you spend in that line has a big impact on your travel experience. And that's why we decided to partner with TSA, CLEAR and customs. In fact, we're an early investor in CLEAR, to make wait times shorter and more predictable. We've made a lot of progress using everything from biometric technology to computed tomography scanners. These tools help create a smoother, less stressful experience, even on the most difficult travel days. It's still not perfect, of course. And we know there is much work to be done. Most of you flew to CES, and I know there had to be some moments of stress along the way, especially if you did not fly on Delta. We want to eliminate those pain points, because they're not only stressful for you, but for our employees as well. So to talk about how we're eliminating those stress points, I want to introduce someone who's on the leading edge of that effort. Ms. Sandy Gordon led operations for our 25,000 flight attendants worldwide for more than 10 years. And now today, she leads more than 10,000 ground agents as part of our airport customer service team. I'd like to welcome Sandy Gordon now to the stage. Sandy, please come on up. Sandy, we all experience stressful moments when we travel.

I know. You're right, Ed. I know I do, and I am certain that many of you in the audience do as well. And it's interesting to note that our employees actually share in those stressful moments along the customers' journey. For example, while customers are worried if there'll be enough overhead bag space, our agents are working feverishly to help them, all the while remaining focused on ensuring we get the flight out safely and on time. We've done a lot of research to identify stressful travel moments for customers and employees. We asked our customers to wear Fitbits and to record -- to video record their journey so that we could see the issues that they faced at every point. Now I have to be honest, all of it wasn't pretty. But we listened, and we learned. And here's what we confirmed. Not surprisingly, customers and employees reach their highest stress levels during irregular operations, like when weather causes a delay or even that rare cancellation. We learned that there's a lot of stress that occurs before you even get to the airport. You have so many things to manage that seem out of your control, like traffic patterns or parking. Understandably, we saw that navigating security checkpoints, boarding with carry-on bags and unexpected turbulence are all stressful moments. And then there's the stress of simply being away from home. But in this research, we also validated something we always suspected to be true. When customers have a warm and engaging interaction with our people, they are less stressed, and they enjoy their travels more. And so this is why we've invested in empowering our people on the ground and in the air with digital tools, tools that help them deliver a better experience for our customers. Agents and flight attendants now have handheld devices that will allow them to recognize a SkyMiles membership milestone or take care of that special request that will make your trip a little easier. And our pilots, well, our pilots now have an app that allows them to view any upcoming turbulence so that they can give customers and crew members a heads-up, because we've realized that being informed ahead of time really reduces the anxiety associated with that issue. So these are just some of the great examples of how we can combine the power of technology with the human touch of the Delta people to reduce stress and transform the experience. And Ed, I have to tell you, my stress level has come way down because I'm turning the stage back over to you.

These finding -- these findings are fascinating, Sandy. And in fact, the research that Sandy was speaking to was fundamental to many of the innovations that we're going to be talking about today. Thank you for your leadership.

Thank you, Ed.

So if the stress of traveling starts before you even leave home, how can an airline help alleviate it? Think about your trip to Vegas this week and everything that you had to do before you left. If you're like me, you check the traffic. You looked up the security wait times, confirmed your terminal information and then had to decide whether to rideshare, take public transit or drive yourself. Wouldn't it be awesome to have one of our famed Delta Red Coats at your side solving those problems for you? Well, since that's not possible, what's the next best thing? We think it's the Fly Delta app. It's already a top-rated travel app. And we know when customers use it, their satisfaction increases by double digits. But our ambition is to do even more. Let's take a look at what Fly Delta could do for you in the future. I'd like you to meet [ Salone ]. We're going to follow her on a trip today, just a few years ahead of where we sit now. [Presentation]

We have a bold vision for the Fly Delta app to evolve into your digital travel concierge, a platform for the brands and the services that you use throughout your journey. It'll make your trip more relaxing, less stressful and more enjoyable. Imagine walking through the plane choosing your seats with augmented reality or receiving a customized report from Delta's own meteorologist who gives you advance notice of how weather may affect your travel, letting you solve any problems before they get to a critical stage. Today, you can track your bags in real-time on the app. I know I always feel relieved when I get that push notification that my bag is on board with me. But you should also be able to track everything from pets to a child traveling alone. And just imagine this scenario. What if instead of taking your bags with you to the airport, they were picked up at your home and transported directly to your hotel? That means no waiting in the bag drop line, right? No worries about overhead bin space. No crowding around the carousel. You can go directly from the airport straight to your meeting. Or if it's a leisure trip, go and explore that new city. And because it's all tracked on the app, there is no stress about whether your bag has been lost or, should I say, mishandled. We like to say at Delta that we never lose bags. But they are occasionally mishandled, but we find them real quick, and we get them back to you real fast, okay? Now this is a very real scenario that we're working right now to bring to life. And you'll be able to pay for all of these options directly from the app. And what's really cool is that you'll be able to use your Delta SkyMiles as the currency to pay for everything, from your rideshare all the way to shopping at an airport store. These are exciting opportunities, and we know that it's going to take us some time to get there. But we're taking the first steps on this journey with a great partner who is already, today, at your front door. I'd like to invite John Zimmer, the co-founder of Lyft, to join me out here on stage. John? Good evening, John.

Thanks for having me.

John, there's a lot we're going to do out into the future, but I'd like to get started to let everybody know what Delta and Lyft are already working together on.

Sounds great. Thanks for having me.

Sure.

What's exciting to me is that while Lyft and Delta were founded nearly a century apart, both of us share a strong commitment to great hospitality and innovation. Our teams have been working together now for about 3 years, with the shared goal of improving the travel experience for our customers. We have made it easy to link SkyMiles and Lyft accounts to earn 1 mile for every dollar spent on U.S. rides. And so far, we've awarded more than 1.5 billion miles together. And this week, we'll be doubling the miles you can earn on rides here at CES. And I'm happy to say, I flew here on Delta and had a great trip.

That's great. I'm always pleased to hear that, John. And I have to say, I took a Lyft to the hotel from the airport myself, and I'm going to be looking for those double miles in my account.

You got it.

Now there's no question. Our companies, our people are bold innovators and born collaborators. And now we're ready to take the next step in the collaboration to make it even more meaningful for all of our customers. So what do you see as the biggest opportunity as we work together to transform the Fly Delta app into a true digital concierge?

So for me, I think about my personal experience. I [indiscernible] and when I'm with my family, there's always a ton of excitement for the upcoming travel, mixed with some stress along the way. Think about all the planning you had to do for CES, dealing with traffic, security, unpredictable lines. And what we're looking to do with Delta is remove as many of the stresses as possible from travel and actually bring much more joy to the experience. So a few things I'm specifically excited about. First, when you need to head to the airport and request a ride, we want to automatically take into consideration things like flight delays, bad weather and traffic based on real-time data from Lyft and Delta. And when you're leaving the airport, Lyft now offers Fast Match. So instead of going to a hectic pickup area, you can use a unique security code to match with the next available driver that pulls up. And if you want to upgrade your [indiscernible] a more premium vehicle...

That's what I did.

Nice. We want to help you do that with Delta SkyMiles.

So as we look to the future of travel, it's clear. It's going to be multimodal, and that's cool because that's the foundation of our partnership. Tell us a little bit about your vision for multimodal travel over the next few years?

Sure. So our vision is that Lyft will provide all of your transportation needs in one place, in one app. So in addition to ridesharing, we now have the country's largest network of bikes, with New York hitting -- New York City hitting a record 100,000 rides in a single day.

Wow.

We're also testing an incredible car rental experience, currently live in San Francisco and Los Angeles, and we encourage public transit, with live schedules right in the app. And we're just getting started. Here in Vegas, Lyft has one of the largest self-driving services in the U.S., with more than 75,000 rides completed already. You can actually get a self-driving ride right now on the strip. And while we bring all forms of transportation together in one place, I'm most excited about how both companies share a strong belief in embedding values and service into the work we do. For Lyft, we've built out transportation access programs across the country to make it easier for people to get access to healthier food and a job interview. We're also, at Lyft, committed to sustainability. Our goal is to make every ride 100% electric. This year, we partnered with the Governor of Colorado to make one of the largest deployments of electric vehicles in U.S. history. And it's really exciting to think about how our partnership with Delta can deliver on making travel a much more enjoyable experience.

Well, John, thank you for being with us today. It's inspiring to see your vision for the future and how well they line up and integrate with ours. Thank you for being a great partner. And thank you for joining us today.

Thanks again.

Thank you, John. So the future of transportation is clearly multimodal. And that's why, for us, partnering with Lyft is helping us redefine what it means to be an airline. Another great example is a partnership that we've recently announced with Wheels Up. Wheels Up is taking the ridesharing concept to the skies by extending it to private aviation. Together with Delta, they are building one of the largest platforms for private aviation in the country, both physically with our combined fleet of nearly 200 private jets and digitally with their innovative crowdsourcing technology. Their approach is truly democratizing private air travel. And at Delta, we have invested in Wheels Up to help them realize their vision of making private air travel accessible, more affordable and more efficient. It's partnerships with Lyft and Wheels Up that open a world of possibilities for Delta customers at every point of their travel. Now let's continue our journey by taking a fresh look at something that's essential to travel that you all know really well, airplanes and airports. Over the past decade, we, at Delta, have focused much of our energy and our investment dollars on new state-of-the-art jets. In fact, by the end of this year, we will have replaced a full 1/3 of our mainline fleet in just the last 5 years. These aircraft are far more efficient, reducing emissions by 25%, and they take your experience to a whole new level. This year alone, we're taking 80 new planes into our fleet, replacing older, less-efficient jets. International wide-bodies like the Airbus 350 and the Airbus 330-900 NEO are loaded with new technology. And these planes have a range of cabins to provide a great experience at all price points. Our main cabin seats, I have to say, are among the most comfortable in the sky. And our award-winning Delta One suites, which 2 lucky winners are going to experience here real soon, have sliding doors for privacy and provide the ultimate travel experience for those long international journeys. And if you've recently flown from Detroit to Dallas or New York to Houston, for example, you've been on our brand-new Airbus 220. It's a narrow-body plane that's designed to feel like a wide-body jet, with spatial design and the latest technology in every seat and even has windows in the bathroom. We're proud to have been the North American launch partner for the 220, and you'll be seeing many more of these amazing aircraft in our fleet over the next few years. We've made great progress transforming the in-flight experience, but now it's time to bring that same innovation and ingenuity to the ground experience. We've all spent time in outdated airports designed for a bygone era of travel, and a new vision is long overdue. So we're investing billions of dollars in airport infrastructure. And any of you that have traveled recently through Los Angeles, Seattle, Salt Lake City, Atlanta, Minneapolis or New York are starting to see these investments come to life. We are reshaping and redefining the airport experience, bringing the amenities that you want to the terminals and gate areas where you can enjoy them. It's another way we're continuing to make travel easier, less stressful, and I dare say it, enjoyable. Let's take a look at what that airport experience might resemble in just a few years. [Presentation]

Now you might think that [ Salone's ] experience may look like science fiction, but it's actually closer than you think. And one aspect of it, personalized signage, is coming to an airport very soon, near you, thanks to the wonder of Parallel Reality. Now you've heard of virtual reality, augmented reality, but what exactly is Parallel Reality? Well, it's an astonishing new technology that's being developed right now by a team of talented entrepreneurs at a start-up called Misapplied Sciences. And Delta has invested funds, time and our own brain power into bringing this idea to life in airports and beyond. We found Misapplied Sciences, thanks to our own in-house innovation center, which we call the Delta Hangar. And I'd like to now welcome Nicole Jones, who leads the Delta Hangar, to the stage. Nicole, please come on out. And let's also bring out the CEO of Misapplied Sciences, Albert Ng. Albert, can you join us? Nicole, let's talk about Misapplied Sciences and the role that start-ups are playing within Delta.

The Hangar is a channel to enable and accelerate innovation within Delta. Delta employees know our customers and our operations best. So we focus on applied innovation, which is about delivering real value to the customer experience. We often partner with world-class research institutions, start-ups and the venture ecosystem in order to identify, test and scale solutions for our customers. When we met the Misapplied Sciences team, we were looking for solutions to reduce stress for customers in the airport environment. It's been a great partnership because Misapplied Sciences brings not only the technology, but also the expertise to make a significant impact in that environment.

Nicole, you're right. And I'm just amazed at this technology, and everyone at the conference is going to get a chance to see it displayed. But Albert, please first explain how it works.

Thanks, Ed. It really does seem like science fiction, doesn't it?

It sure does.

Imagine an international airport terminal completely personalized for you. Imagine walking up to a giant flight board and instead of a list of 100 flights, you see only your own flight information and in big letters so you can see it from 50 feet away. All of the signs are in your preferred language. Arrows light your path towards your gate, and the signs for your gate are flashing so you can spot them easily. Another screen lets you know you have an extra 15 minutes and directs you to the nearest coffee shop. At the gate, you see the exact time you board and the news that you got upgraded. So the entire airport environment is tailored just for you. Now that would be easy if you were the only person at the airport, but we all know that's not the case. You'll need a new game-changing technology for a shared environment to be customized to every person. That's why we, at Misapplied Sciences, created Parallel Reality. Parallel Reality is a new display technology where many people looking at the same display at the same time can each see different things. So when you look at the display, you see content tailored for you, while the person walking right next to you simultaneously sees content tailored for them, without a hint that the 2 of you are seeing different things. You're not wearing any special glasses or looking through a smartphone camera lens. You just look at the displays with your naked eyes. We have display technologies that work for crowds ranging from tens of people up to thousands of people, all looking at the same display at the same time and each seeing unique content.

Albert, that's incredible. And you make it sound so simple. And I know a lot has gone into developing this technology and bringing it to market. So tell us a little bit more about that, and how does this thing work?

Sure, Ed. Parallel Reality is actually one of the most sophisticated display technologies in the world, involving many underlying innovations that only we've ever achieved. These range from inventing new processor architectures, to developing new computer vision algorithms, to pioneering new optical manufacturing processes. We then wove together these interdisciplinary innovations to create engaging, personalized Parallel Reality experiences.

Yes, Albert. And these kinds of experiences are exactly what we want to enable for customers who are flying with Delta. We hear feedback that the airport environment can sometimes be stressful and unfamiliar. Parallel Reality addresses that concern.

We've been lucky to have a partner like Delta whose investment and commitment beyond that are vital to bringing Parallel Reality to market. We've also been impressed by how quickly the team at Delta moves, how everyone from the working team to leadership connected the dots on what the technology immediately means to customers and worked hard to make that happen. And because of this incredible partnership between Delta and Misapplied Sciences, the airport experience of the future that might initially seem far away is right around the corner.

That's right, Albert. This is not a technology that's going to take 20 years to bring it to life. We are excited to announce that Delta and Misapplied Sciences will bring the first-ever commercial application of Parallel Reality by midyear to the Detroit airport. But you don't have to fly to Detroit to see it. You can see it for yourself. We're debuting it here at CES for the first time outside of the lab in our Central Hall booth.

Well, that's awesome and everyone was so excited. They're applauding your announcement there, but it's actually starting this summer in Detroit. Okay. We'll have the first pilot. So for all of you traveling through Detroit, we have a lot of great customers that hub through Detroit. They're going to have an opportunity to explore and experiment this. But this is a great combination of how we're combining Delta's strength and scale with innovative start-ups to advance the future of travel. And we'd also love to hear from you. If you have ideas for our journey into the future of travel, please stop by and see us at our CES experience or contact Nicole at the Hangar. And that's another reason, Gary, why we're here, it's because we're open for business. [Presentation]

Now I don't know about you, but I love that vision of [ Salone ] effortlessly boarding her flight. As we all know, boarding can be one of those nerve-racking moments at the airport. There can be confusion about when you need to be at the gate, which group you'll be boarding with and where you're going to line up. And of course, people are concerned about getting to their seat and getting their bag into the overhead before space runs out. And we've been doing a lot of work in this area, researching different methods for boarding to make it easier. And there's still a lot of work to be done before we entirely fix the boarding experience, but we have a new tool that we believe is a step in the right direction. Later this month, the Fly Delta app will start providing virtual queuing. Right now, the app sends you a notification when your flight is boarding. That's helpful, but only to a point. With virtual queuing, the app will alert you when it's time for your seat to board. That means there is no need to cluster at the gate. You know who you are out there, waiting for your boarding group to be announced. You can stay comfortably seated or even enjoy a coffee at a nearby cafe until it's your time. If we can reduce stress and make things easier at the gate with virtual queuing, it makes you feel that much better when you get to your seat. And now you're seated and you're settled and you're at that "Ah" moment where you can enable your own kind of airplane mode. Now that means different things to everyone. For some, it's time to relax, maybe time to sleep. If you're me, it's probably time to work. But no matter what your plans are for your flight, our research has shown that we enter a heightened emotional state when we fly. And immersive in-flight entertainment is one of the best ways to de-stress while you travel. It helps you to relax. It increases your enjoyment even if you do encounter that rare delay. And that's why we continue to install seatback entertainment screens on planes. And we even turn them on before we leave the gate. You'll have a personal seatback screen on over 80% of our Delta planes, more than any other airline in the world, and we continue to install more every single day. And I can speak from my own experience. In our busy lives, sometimes the only time that you get to watch a movie is when you're flying. So many of us discover great films or artists while we're soaring above the clouds. For me, I won't forget watching Bohemian Rhapsody on a trip last year. Queen's songs were stuck in my head for weeks. Artists, directors and studios are realizing that Delta flights are becoming a platform to reach new audiences with their films. One such film that you may have heard of is The Farewell. It made big waves at Sundance this past year. And just the other night, it won a Golden Globe and is generating a whole lot of Oscar buzz. And now I'd like to welcome out to the stage the writer and director of The Farewell, Ms. Lulu Wang. Lulu? Lulu, thanks for being here. I recently watched your film, and I've got to say, it's a remarkable piece of work. Congratulations to Awkwafina on winning the Best Actress in the movie. It's very, very cool.

Thank you.

And one of the things I loved about your film is that's so relatable. We all have complicated family and cultural dynamics that we navigate every day. Why is it important to tell these kinds of stories?

I think it's really important that the stories we tell and that we hear and see represent the landscape of our country, of our world. It expands people's points of views, and it allows us to see that stories transcend language and culture and nationality. When I was first pitching The Farewell, I kept being asked, "Is this a Chinese film or an American film?" And the truth is, it's what I am, which is neither and both. And so it was such an incredible experience this year having -- last year, I should say, that having the film out and so many people were saying, "I'm not Chinese. I'm not even Asian, but this family is my family. This grandma is my grandma." And so I think we need more stories like that.

We absolutely do. And there's a lot of commonalities in what we both do. We try to bring people together through connections and create connections. You through storytelling and Delta through travel. So let's talk about your own travel experiences and what does airplane mode mean to Lulu?

Well, first of all, I've been traveling with Delta for a very, very long time. And I'd say I'm a very loyal customer, not just because I'm here, because my family lives in Atlanta. And I have status, my status with Delta.

That's great. Status is important.

Which is very important. And I think that airplane mode for me is really about self-care. It's the one place where I can say, "Oh, I'm sorry, I couldn't respond to those e-mails. I just -- was up in the air." And people seem to forgive that, even when there's Wi-Fi. But I just love to zone out and watch a film, and it's a place where I can watch the films that I haven't taken the time to watch, something romantic and something maybe that's seen as a guilty pleasure and not as like a research film or something. And lately, I've been wearing face masks on the plane with my glasses over the face mask. So I get a lot of weird looks, but I feel like it's truly one of the few spaces that's just you time, and it's important to do the self-care.

Yes, yes. Well, that's really important. I can relate because some interesting research was done by one of our partners recently about the fact that people are more likely to cry when they watch a movie on a plane. Even if they watch the same one on the ground, they don't cry because you have a totally different reaction in the air because of your elevated emotional state. Have you ever noticed a difference in your movie watching when you're on a plane? And what does that mean to you as a director?

Yes. Well, first of all, I cry a lot on planes. They just -- every time I'm on a plane, I cry because when my family first immigrated to America, that was a really big -- that was our first major plane journey. And when I went to college, I was on a plane. And so I feel like there's something really symbolic about plane that takes you away from something, but towards something else, something new, something potentially unknown. And so definitely, it's an emotional experience. And I noticed that other people feel that way, too. They have an intimacy with the screen. And as a director, that's really all you can ask for is for an audience member to be fully engaged in the story, and they're not going anywhere. So it's a very intimate experience. And recently, I was on a flight and The Farewell was playing, and I saw someone crying, and I really wanted to go up to them and be like, "Hey, I made that movie." I didn't do it. It's just to see their reaction. I didn't do it, though. I didn't do it.

That would have been pretty cool. That would have been pretty cool. So in addition to the accolades that The Farewell is receiving, it's also going to qualify for the ReFrame Stamp. ReFrame Stamp is for gender parity in television and in movies. And can you tell us a little bit about ReFrame? And why that's an important distinction that our audience should be aware of?

Yes, absolutely. It's a really important time for women everywhere and particularly right now in the entertainment industry. So ReFrame was founded by Sundance Institute and Women in Film. It's a coalition dedicated to achieving gender balance in film and television. I'm super glad that Delta is such a supporter of Women in Film and ReFrame because these organizations really supported me in my career. They have workshops. They have mentorships. And that's so important to have people who believe in you and who continue to support you in whatever way you need as you're coming up.

Thank you. We love the cause. We are -- we're a partner with Women in Film and ReFrame through a $125,000 annual contribution that we make to support female and diverse voices. And this year, we're providing an additional $100,000 to that campaign. But even more important than that is we're creating the first ReFrame channel onboard our aircraft. And it's going to house a range of movies and TV shows that have earned the ReFrame Stamp. And we have 600,000 customers traveling on Delta every single day. So the exposure for ReFrame will be massive.

That's really great. I'm super excited that people can watch, not just The Farewell on Delta, which you can, so please do, but other films that have the ReFrame Stamp. And I really appreciate the work that you guys are doing to bring more diverse content to people around the world. And one last thing, while we're talking about the future of entertainment, the thing that I love to do -- I don't know how you guys feel about this, is when I travel with a partner, I really want them to get to watch the same film that I'm watching and watching at the same time. So if there's a button or something that you can make that allow us to sync our movies and hear it at the same time so that we don't have to go, 1, 2, 3, we just want to do now, go, that would be really cool.

Lulu, that's a great idea, and it's something that we're definitely going to bring to our team. And the good news is that we've got the technical opportunities and capabilities to go solve those types of issues. Thank you for being here with us today. Good luck. We wish Lulu a good luck with the upcoming award seasons and the Academy Awards. We're going to be cheering and rooting you on.

Thank you.

Thank you. So let's check in with [ Salone ] who is now onboard her flight. [Presentation]

As you can see, we have a vision that your seatback screen is going to become your onboard hub. And through it, you can engage with other customers that are headed to the same destination, you can confirm your meals, you can manage entertainment and make sure that your flight is truly your time. Now how can Delta make all of this possible? Well, a couple of years ago, we recognized that we needed to take direct control of our in-flight entertainment and bring it to a very different level, a whole new level. And we set up inside of Delta our own disruptor that we call Delta Flight Products to start up within mother Delta. And the team there pioneered the industry's first wireless in-flight entertainment system. By eliminating the old wired hardware, we've made it lighter and easier to maintain and at half the cost of the previous system. And what that means for you is more content, like shows, movies, music and games updated much more often. And importantly, it also frees up the space from underneath the seat in front of you, where the whole hardware box used to live. And because it weighs less, it benefits all of us by reducing emissions on every flight. And that's pretty cool. And we also know that being connected in-flight is important. And sorry, Lulu, I believe in it, okay? We've made a lot of progress over the past few years to make our in-flight Wi-Fi faster and more reliable, but it's not yet to the level that our customers deserve. And that's why inside of Delta, we have a dedicated team working nonstop to meet that need. And I'm confident we're going to get there within the next couple of years to deliver Wi-Fi bandwidth and speeds as fast as -- in the air as on the ground. In fact, you're closer to the satellites when you fly, right, and at the same price point that you normally pay. Where else do you pay for Wi-Fi other than on plane these days? Nothing. It should be free. We firmly believe that. And it's important to us because our mission is connecting people. And that includes providing connections online and in the air. And speaking of connections, wouldn't it be great to use your own Bluetooth headphones on a Delta flight? Yes. Well, that's another technical challenge that we're making a lot of progress on, and we're going to hope -- we're hoping to solve real soon. So Delta Flight Products is investing time and resources in these things because we know they're important to you. And we're committed to meeting and exceeding your expectations. So we've talked a lot about technology [ tonight ]. But as I said when we began, our leading source of innovation is our people. And that's why we're developing tools to help make them -- their interactions with you less transactional and more meaningful, more human. Our people should not be spending their time taking tickets and scanning boarding passes. They're way too talented for that. It's the tools that we're building that are getting Delta people from out behind the counter so they can assist you, solve your problems in real time and make your trip as smooth as possible. A new technology is also being developed in our operations center and in the cockpit, helping to ensure a smoother, more reliable trip even in tough circumstances. And here's just a few examples. The Nomad handheld device lets Delta agents offer personalized and meaningful assistance to customers anywhere in the airport. There's no more need to line up at a counter. I mentioned earlier how we've canceled cancellations, but we still have to deal with weather variables like hurricanes or a nasty northeaster. And that's why the team in our operations and customer center is developing the industry's first machine learning platform to help ensure a smooth operation even in extreme conditions. This system uses operational data to run scenarios and project future outcomes while simulating all the variables of running a global airline with more than 1,000 planes in the sky. It helps our decisions -- decision-maker quickly make the right call in real-time, and you can see a display used and actually test it at our CES experience center. Another focus we have is on turbulence. We are seeing more and more instances of it. And it has a very real impact on our customers and on our employees. As Sandy mentioned earlier, we have been able to reduce the impact of turbulence with the Flight Weather Viewer, which is an app developed by our very own Delta pilots. It visualizes turbulence and other weather hazards along flight path. Using it, pilots can adjust their course more precisely, decreasing CO2 emissions by tens of thousands of metric tons a year, and it also helps our pilots give real-time updates to travelers while they're in the air, in advance of encountering turbulence, and they can also let them know how long we expect it to last. Having that information to our customers is another way that we can reduce stress. But for all our employees do for you, we embrace our responsibility to take care of our employees very seriously, take the very best care of them. And in 2018, Delta announced a partnership with Sarcos to advance groundbreaking exoskeleton technology. It's going to make our employees safer and better able to do their jobs. Let's take a look. [Presentation]

Now I've always thought of our people as superheroes, but now they can be superhuman as well, right? You guys want to see the exoskeleton? Let's bring the XO on stage. [ Fletcher ], come on out here. Here comes the world's first and only full-body, battery-powered exoskeleton, and his name is [ Fletcher ].

Hey, Ed. Hey, CES. How are we doing today?

[ Fletcher ], I've got to say that looks pretty cool. That looks pretty cool. But we've got something out here. What are we...

We do. We do. We have a special delivery for you. And let's go ahead and let's uncrate it for you. How about that? I think you're really going to like this gift, Ed.

Well, you've got me really curious. It looks heavy. I wonder what's inside there. Uh oh. That doesn't look too much like a nice present. It's -- who gave you -- who told you to give me one of these? That's 150-pound barbell. Well, I know from my new year's resolution, I promise to get back into the gym. I think that might be a little too heavy to start with.

Well, I -- well, with the Guardian XO, anyone can lift this much weight. So even though it is 150 pounds, it's really easy. Because strength isn't a factor since the suit's doing all the work for you.

So what does it feel like to wear? What's it? What -- is it comfortable? Can you move around?

Yes, the suit's super comfortable. It carries its own weight as well as the weight that I'm carrying, just like this. And honestly, it feels like a small backpack, if anything at all.

Yes. And how about moving? Is it -- does it restrict your range of motion a lot? Or...

No. I mean you guys saw me in the video. That was me with the helmet moving the exoskeleton around. And you saw me changing tires. You saw me lifting boxes and suitcases. And I can even dance in the exoskeleton. Do you want to see that?

You can dance inside that?

I can dance inside this thing.

What it's like? Let's see and show us some moves. That's pretty good. We're going to see you in the disco later tonight, I think. Well, Fletcher, thanks so much for my delivery. I've got one last question for you.

What is it?

If I'm going to have to use that, you're going to need to be my workout partner.

Oh, of course, Ed. Anytime. I'll do it.

Okay. Give me a fist bump. And I'll see you in the gym.

Okay. Sounds great.

Going to put it back up there?

Yes. Though, I will have to say, we should probably start with something a little bit lighter honestly unless we're using the exoskeletons, then we could do this all day.

Absolutely. Thanks, [ Fletcher ]. Take care.

Sounds good. Yes, Ed. See you at CES.

If you would like to learn more about the Guardian XO suits and even try out the technology for yourself as I did last night and put the suit on, come visit us at the Delta CES experience. It's very, very cool technology. Now let's get [ Salone ] safely back and on her way to her destination. [Presentation]

I hope we've made it abundantly clear today that Delta's responsibilities and vision extends far beyond the flight to the entire journey. And by creating a seamless experience, we can help travelers look up and connect with the world around them while they travel. There is no substitute for the power that travel has to change lives and make our world a better place. Unlike a cellphone, a video chat or a text message, it's real-life connections that build understanding, empathy and the desire to act. And we all know the most vital responsibility that we share is to build a better world. We're also well aware that our future and the futures of generations to come require us to be accountable for the damage the human progress has made to our environment. And at Delta, we take that responsibility very seriously. We've been committed to sustainability for years, and we're making our efforts even more meaningful as time goes on. Like so much we talked about today, there is no single solution, but projects, large and small, are bringing progress and hope. Back in 1990, Delta became the first U.S. airline to recycle cans and other onboard waste. We've recycled enough aluminum to equal the weight of 7 Airbus 350s. We're recycling oil and scrap metal at all of our maintenance spaces. And we've recycled uniforms and life vests. Delta is leading our industry in eliminating single-use plastics onboard our planes and at our airports. And some of those plastics are being recycled into the products you're sitting on today with your blankets. But our chief focus is jet fuel. It's the #1 contributor to our carbon footprint. Air travel on the whole contributes about 2.5% of the world's carbon emissions. And Delta has been working for years to reduce our emissions and the impact on the environment. Today, our total emissions are down 11% from where they were in 2005. And in 2012, Delta voluntarily capped our emission levels, which means that all growth beyond 2012, and we've grown 25% since then, has been carbon-neutral. But these steps are good, but they're not nearly enough. Our goal is to cut total emissions in half by 2050. And to get there -- yes, you can give us applause. We need your help. To get there, we're deploying the tools available today and investing in the technologies of tomorrow. The new planes I mentioned that we're bringing into our fleet are 25% more efficient, which translates to lower carbon emissions. We've invested in a study to produce biofuel made from forest debris in the Pacific Northwest. And we recently entered a different contract to bring us 10 million gallons of renewable biofuels a year as soon as that production facility is completed shortly. We were the first airline to offer customers the opportunity to join us and contribute to making their travel carbon-neutral and using those contributions to invest in renewable and natural climate solutions. And this week, we are doing it for you. If you flew Delta to Las Vegas, we're offsetting your flights to and from CES so your journey did not leave a footprint. Now let me be clear. Let me be clear, offsets aren't the whole answer to sustainable travel. But they are one tool. And the investments that we're making with them are creating extraordinary opportunities, and their impact is big. Through offsets, we're putting investment behind initiatives that have lasting positive impact, not just on the environment, but also towards eradicating poverty. We're fortunate to have a tremendous partner who's here with us today to help talk about how sustainability and poverty are linked and what, together, we're doing about it. I want to welcome Hugh Evans, who is the Co-Founder and CEO of Global Citizen, to join me on stage. Thank you for joining us, Hugh, and it's great to have you here. Tell us a little bit about Global Citizen. Where did the idea come from? And how did you get started on this journey?

Well, thank you so much, Ed. It's a pleasure to be here this morning. All my life, I've been passionate about sustainable development. My journey started when I was 14 years old. In my first year of high school, I started raising money for communities in the developing world. We were an enthusiastic group of kids. We raised more money than any other school in Australia. And I was awarded the chance to go to the Philippines to learn more. It was 1998, and there was one night that changed my life forever. We were taken on to a slum in the center of Manila called Smokey Mountain. It's an entire community built on top of a rubbish dump with the very infrastructure this whole community revolves around scavenging. And so the kids literally run after the garbage trucks. They try to get bits of scrap metal, pieces of food and things that they can recycle. And that night, I was placed in the care of a kid my own age named [ Sonny Boy ]. We were both 14 at that time, but where I'd come from, middle class Melbourne, [ Sonny Boy ] had tattoos on his forearm because he's about to become his gang leader, and that was his form of initiation. And that night, he took me to his house, and we cooked this meal together with some food that I brought with me. But when it came time to go to sleep, we literally lay down on this concrete slab, the size of half of my bedroom with myself, [ Sonny Boy ] and the rest of his family, 7 of us in this long line. And I'll never forget lying there that night with the smell of rubbish all around us because we're lying on top of a garbage dump and cockroaches crawling all over us. And I didn't sleep at all. I just lay awake thinking to myself, it really is pure chance that I was born where I was born and he was born there. And so that night, I decided to commit my life to it. Fast forward to 2006, the G20 world leaders were coming through Melbourne, Australia. And me and my mate Dan had this idea to run a small concert called the Make Poverty History Concert that one day exploded when we got a phone call from Bono and Pearl Jam who said they wanted to headline our show. As you can see, I got a bit too...

Wow. That's a pretty cool call.

I got a bit too excited that day. And millions of Australians signed on to support our campaign. And to our amazement, the Australian government heard our collective voices, and they agreed to double investment into international development. An additional $6.2 billion was committed that night for the eradication of extreme poverty. And it felt like this incredible validation. We managed to convince our government to do the unthinkable and act to fix a problem miles outside of our borders. And off the back of that, we got a phone call from the United Nations in New York who said they wanted to help us take our work all around the world. And so Global Citizen was born that year to build a lasting movement of citizens to take action to help end extreme poverty, tackle climate change and achieve the United Nations sustainable development goals.

Hugh, that's an incredible story. That's just -- I mean, he's an amazing guy. Let's talk about the state of poverty in the world today and how does Global Citizen address it.

So when we talk about extreme poverty, we're talking about those living on less than USD 1.90 per day. It's a sort of useless suffering where a child would die for a lack of a $0.30 immunization. The good news is that we've made enormous progress. Extreme poverty is halved within my lifetime. When I was born in 1983, 52% of the planet lived in extreme poverty. It's now down to less than 12% of the planet today.

Encouraging.

The second piece of good news is that the world actually has a plan to end extreme poverty and tackle climate change. It's called the global goals for sustainable development, 17 goals with 169 indicators designed to end extreme poverty, tackle climate change and reduce inequality. But the more sobering piece is that the price tag to achieve those goals is a whopping $350 billion a year for the next 10 years or $3.5 trillion. This is not about charity. It's not going to be solved through black-tie gala dinners, which are Band-Aids for bullet holes. What we need is we need a lasting movement of citizens who call on world leaders to make multibillion-dollar investments to achieve the global goals. And I'm proud to say that in the last 8 years since Global Citizen Festival was founded, more than $48 billion has been announced on Global Citizen Festival stages around the world.

That's incredible. So I know 2020 is a pivotal year for the movement and our partnership. Why is that?

Well, Ed, at key moments in history, humanity has come together to achieve extraordinary things. It happened back in 1985 in response to the Ethiopian famine with Live Aid. It happened again in 2005 in response to the crippling debt crisis in East Africa with Live 8. And I believe 2020 is our generation's moment. Global Goal Live: The Possible Dream is going to unite musicians, citizens, world leaders, the private sector and philanthropists all this year to achieve the sustainable development goals. On September 26, 2020, humanity will come together during UN Climate Week to end extreme poverty and tackle climate change. We're going to host 6 simultaneous concerts around the world in 5 continents to achieve the possible dream. And we're working with the United Nations Deputy Secretary General on this goal. And we're so thrilled that yourself, Ed, and Delta, one of the first partners to sign on as Co-Chairs of this historic campaign.

Well, that's -- it's a real honor to be alongside you on this journey. And one of the first steps with Global Citizen that we've made is to commit the Global Goal Live campaign to be entirely carbon-neutral through investments that address poverty and environmental sustainability. One project that we're working on together is creating the Great Green Wall. And it's such a cool concept. This project is building a forest that will cover the entire width of the continent of Africa from one ocean to the other. And in addition to tackling climate change, the Great Green Wall will help provide food security and jobs for millions of people. So as communities are revitalized, it's also done in concert with and support of the natural environment, creating its own virtuous circle.

I absolutely love that, Ed. And Delta's carbon-offset investments for Global Goal Live are going to benefit programs similar to the Great Green Wall because we know that the forest of Uganda and Kenya are literally the lungs of this planet. So protecting them is essential for our future.

Well, it's definitely true. And the projects that we're investing alongside Global Citizen will build economies that lift people out of extreme poverty through sustainable business models and practices that will benefit those people and the planet for generations to come.

Exactly right. Because eradicating extreme poverty and reversing the devastating effects of climate change are really 2 sides of the same coin. And Delta's contribution is going to make an enormous impact.

That's so true, Hugh. Well, we could spend lots of time talking about the great work that we're doing because I'm so inspired by it. It's important, and this is a natural partnership for us. But you've got a stage here. You've got thousands of people here present at CES and online streaming. What can they do if they want to take action to help us achieve our goals?

Well, thank you, Ed. We would love every single one of you to be involved in Global Goal Live: The Possible Dream this year. So if you want to get involved, please go to globalcitizen.org/delta. And thank you so much, Ed. We're so excited by this.

Thank you, Hugh.

Thank you.

That's a moving story, Hugh, and what a way to close. I hope today has been valuable for you. And I hope you're inspired by the journey that we've shared. Honestly, 5 years ago, I never would have imagined that Delta would be here at CES, charting our path to the future and into the next century of flight. And I am truly humbled by the opportunity to share our passion and enthusiasm with you all. And I hope you can join me and the other 90,000 people of Delta Airlines on our journey to the future of air travel. And as I invite our employees to come up on stage with me, come on up and join me. Ours is a voyage that will never end as we keep climbing on behalf of all travelers. And before we go, anyone who knows me knows I'm a sucker for a selfie, especially with other members of our Delta family. So Delta people around the world have been watching on Sky Hub channel, and I hope you'll join us as we take a selfie with a big wave to see all the people in Atlanta and around the world from Delta as we send our thanks to you for giving us this great opportunity. Thank you all. Come on, everybody, join us in the back. Thank you, thank you. Bye, everybody. Enjoy your conference.