A Delta Airlines Boeing 757-251 approaches Washington Ronald Reagan National Airport (DCA) in Arlington, Virginia on February 24, 2021.
Daniel Slim | AFP | Getty Images
Delta Air Lines again reported a quarterly loss on Thursday, but said it would break even in June as travel demand recovers due to a deep pandemic slump.
Here’s how Delta performed in the first quarter compared to what Wall Street expected, based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: a loss of $ 3.55 versus an expected loss of $ 3.17 per share
- Total income: $ 4.15 billion against expected revenue of $ 3.91 billion
Delta and its competitors are still losing money, but are excited about improving the reservations as more travelers are vaccinated, travel restrictions increase and more attractions reopen. Delta said domestic leisure bookings are at 85% of 2019 levels, although international travel and business travel are still depressed.
The Atlanta company posted a net loss of $ 1.18 billion to $ 4.15 billion in revenue for the first quarter, surpassing analysts’ analysis for $ 3.91 billion. Revenue fell by 60% compared to the $ 10.47 billion generated by Delta in the first quarter of 2019. On a adjusted basis, Delta showed a loss of $ 3.55 per share, compared to a forecast of $ 3.17 per share.
Cash burning averaged $ 11 million a day in the quarter, but turned positive to $ 4 million a day last month, Delta said.
“A year after the start of the pandemic, travelers are gaining confidence and starting to regain their lives. Delta is accelerating in recovery with our brand stronger and more confident than ever before,” said Delta CEO Ed Bastian. “If the recovery trends continue, we expect a positive cash generation for the June quarter and we see a path to profitability in the September quarter as demand recovers.”
Delta said it expects revenue in the second quarter to be 50% to 55% lower than in the same period of 2019 as a third less than two years ago. Its spending, which eliminates the cost of fuel, will rise 6% to 9% this quarter, he said.
Delta’s shares rose 1% in pre-market trading after the airline reported the results.
The driver of the carrier will call analysts to get the results at 10:00 a.m.