Delta Air Lines Reported Mixed First-Quarter Earnings
Apr 13, 2022 By MarketDepth
Delta Air Lines (NYSE: DAL) reported mixed first quarter earnings results on Wednesday as Covid-19 continues to affect travel plans. Nevertheless, the carrier expects to make a profit within the current quarter amid a rise in bookings and fares, which should help offset rising fuel costs. Shares rose nearly 6% during premarket trading amid the news.
Revenue Higher than Expected
The major airline reported an earnings loss of USD1.23 per share, compared to the expected loss of USD1.27 a share. Revenue amounted to USD9.35 Billion, higher than analysts anticipated USD8.92 Billion. The company disclosed an adjusted net loss of USD784 Million within the quarter, versus the expected loss of USD807 Million.
Revenue 79% of Pre-Covid Levels
Revenue for the quarter was returned to 79% of the levels accomplished prior to the Covid-19 pandemic. Furthermore, business operations reached profitability during March amid a surge in consumer demand.
“Over the last five weeks we’ve experienced the highest level of sales and booking activity at any time in our history. I think it’s going to be a very strong summer travel period for us going forward.”Delta CEO Ed Bastian told Yahoo Finance
Delta believes that 84% of capacity will return within the second quarter, compared to the same period in 2019. Moreover, it anticipated revenue recovery to reach 93% to 97% of pre-pandemic levels.