Delta Air Lines has reported a first quarter adjusted pre-tax loss of $2.9 billion and an adjusted net loss of $2.3 billion on a 65 decline in adjusted revenue to $3.6 billion versus Q1 2019. For the first quarter, the carrier's adjusted loss was $3.55 per share.
On Thursday (April 15, 2021), Delta Air Lines reported their first quarter financial results. The carrier reported an adjusted pre-tax loss of $2.9 Billion or $3.55/share on a 65 percent decline in revenue to $3.6 billion, versus Q1 2019. The adjusted pre-tax loss excludes $1.2 billion related to the first payroll support program extension (PSP2), partially offset by a $1.5 billion repayment of a term loan secured by slots, gates and routes. Total operating expenses, including the $1.2 billion PSP2 benefit, decreased by $3.9 billion versus the first quarter of 2019, while adjusted operating expenses decreased 33 percent to $3.1 billion compared to Q1 2019.
In Thursday’s announcement, Delta Air Lines’ Chief Executive Officer, Ed Bastian, said,
“A year after the onset of the pandemic, travelers are gaining confidence and beginning to reclaim their lives. Delta is accelerating into the recovery with our brand stronger and more trusted than ever before. 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.”
Delta’s average cost burn during the quarter was $11 million per day, which turned positive in March to $4 million per day. The airline ended the quarter with $16.6 billion in liquidity, including cash, cash equivalents, short-term investments and $2.6 billion in undrawn revolving credit facilities. Delta expects to receive approximately $2.7 billion from the U.S. Treasury in the second quarter under the PSP3 program. The company closed the quarter with debt and lease obligations totaling $29 billion and an adjusted net debt of $19.1 billion.
Delta restored their employees to full hours on January 1, 2021 and announced plans to recall all 1,700 pilots who had been placed on inactive status. As of April 15, 2021, over 44 percent of Delta employees have been vaccinated. The company is also committed to accelerating the funding of their pension plans with a $1 billion voluntary contribution in April and up to an additional $1 billion later this year.
Delta Air Lines (NYSE:DAL) is the global U.S. airline leader in safety, innovation, reliability and customer experience. For the last decade, the carrier has led the industry in operational excellence, while maintaining their reputation for award-winning customer service. I n trading Thursday morning, shares in Delta Air Lines, Inc. (NYSE:DAL) were 1.77% lower at $47.30/share (9:40 AM EDT).
Source: Delta Air Lines