Delta Air Lines Reports Positive Q3 Earnings
Oct 13, 2021 By MarketDepth
Delta Air Lines (NYSE: DAL) reported better than expected third quarter earnings on Wednesday. However, the carrier cautioned that amid rising fuel prices, its bottom line could be affected in late 2021 despite increasing travel demand. Shares fell 1.3% in premarket trading.
The airline reported earnings of USD0.30 per share, compared to the expected USD0.17 a share. Revenue amounted to USD9.15 Billion, higher than analysts anticipated USD8.4 Billion.
“The fact that we’re profitable, while still missing a third of our revenue base, I think, is a great statement about the resilience of the business that we’ve created, and our opportunity to continue to improve it into the new year as demand recovers.”Delta CEO Ed Bastian
The quarters earnings were a necessary boost after experiencing a nearly USD7 Billion loss during Q3 of the previous year. Delta lost about USD881 Million during the second quarter of 2021, though travel demand pushed the company towards profitability during the last quarter.
“I just think about the joy of reconnecting, and that’s what we do best. We bring the world together, we connect, and we’re the conduit through which that joy occurs.”Delta CEO Ed Bastian
Delta anticipates costs, before fuel overhead, to surge 6% to 8% within the fourth quarter amid the added volume. The company plans to fly 80% of its 2019 capacity, compared to the 71% it was flying during the recent quarter.
“While demand continues to improve, the recent rise in fuel prices will pressure our ability to remain profitable for the December quarter. As the recovery progresses, I am confident in our path to sustained profitability as we continue to provide best-in-class service to our customers, strengthen preference for our brand, while creating a simpler, more efficient airline.”Delta CEO Ed Bastian