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 reported another quarterly loss on Thursday, but said it expects to reach the breaking point in June, as travel demand will rebound from a deep pandemic drop.
Below is Delta’s performance in the first quarter compared to what Wall Street expected, according to 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: $ 4.155 billion compared to projected revenue of $ 3.91 billion
Delta and its competitors continue to lose money, but have grown optimistic about improving bookings as more travelers are vaccinated, travel restrictions lifted, and more attractions reopened. Delta said domestic leisure bookings are at 85% of 2019 levels, although demand for international and business travel remains depressed.
The Atlanta-based carrier posted a net loss of $ 1.11 billion over $ 4.15 billion in revenue during the first quarter, beating analysts ’estimates for sales of $ 3.91 million. Revenue fell 60% compared to the $ 10,477 million Delta generated in the first quarter of 2019. Adjustedly, Delta recorded a loss of $ 3.55 per share compared to a forecast of 3.17 dollars per share.
Cash burns averaged $ 11 million a day during the quarter, but turned positive last month to $ 4 million a day, Delta said.
“A year after the pandemic broke out, travelers are gaining confidence and starting to regain their lives. Delta is accelerating recovery with our strongest and most confident brand ever,” said Ed Bastian, CEO of Delta, in a profit statement. “If recovery trends continue, we expect positive cash generation for the June quarter and see a path to return to profitability in the September quarter as demand recovery progresses.”
Delta said it expects second-quarter revenue to be 50% to 55% lower than the same period in 2019 in scheduled capacity, a third lower than two years ago. Its spending, eliminating the cost of fuel, will increase from 6% to 9% this quarter, he said.
Delta shares rose 1% in premarket trading after the airline reported results.
Company executives will operate a call with analysts to discuss the results at 10 a.m. ET.