Delta earningsDelta Airlines releases its Q1 2021 earnings, with prices tumbling 2.80% as it reports yet another quarterly loss.
Delta reported a net loss of $1.19 billion on $4.15 billion in revenue for the first quarter of the year, down over 60% compared to the $10.47 billion the company generated in the same quarter last year. On an adjusted basis, the airline posted a net loss of $3.55 a share compared to the forecasted $3.17 per share, and adjusted operating revenue was down 65% compared to the same quarter the year before at $3.6 billion.
Delta, along with the rest of the travel industry, took a pretty big hit during the pandemic. In 2020, Delta reported its biggest net loss in its history at $12.4 billion as COVID devastated the industry, while operating revenues fell by almost two thirds (64%).
However, things are looking up, and the company now expects to break even in June as travel demand rebounds. Airlines have seen a resurgence in bookings as more people around the world are vaccinated and keen to get travelling. For the month of March, passenger revenue was up 50% from February and according to Delta, leisure bookings have recovered over 85% of 2019 levels. The carrier will also lift its policy of banning use of the middle seat, which has taken up a third of its potential bookings revenue. But Q2 revenue is still likely to be around 50-55% lower than the same period in 2019, while costs could be up nearly 10%.
A year after the onset of the pandemic, travelers are gaining confidence and beginning to reclaim their lives
said Ed Bastian, Delta’s CEO.
Thanks to the incredible efforts of our people, we achieved positive daily cash generation in the month of March, a remarkable accomplishment considering our middle seat block and the low level of demand for business and international travel. If recovery trends hold, we expect positive cash generation for the June quarter and see a path to return to profitability in the September quarter as the demand recovery progresses