Delta Air Lines (DAL) Q1 2021 Results

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 it to reach breakeven in June as travel demand recovers from 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 turnover: $ 4.15 billion versus projected $ 3.91 billion in revenue

Delta and its competitors continue to lose money, but have become optimistic about an improvement in bookings as more travelers are vaccinated, travel restrictions lifted and more attractions reopened. Delta said domestic holiday bookings are at 85% of its 2019 levels, although demand for international and business travel remains low.

The Atlanta-based airline posted a net loss of $ 1.18 billion on $ 4.15 billion in revenue for the first quarter, surpassing analysts’ revenue of $ 3.91 billion. Revenue fell 60% compared to the $ 10.47 billion Delta generated in the first quarter of 2019. On an adjusted basis, Delta posted a loss of $ 3.55 per share, compared to a forecast of $ 3.17 per share.

Cash burn averaged $ 11 million per day in the quarter, but turned positive to $ 4 million per day last month, Delta said.

“A year after the outbreak of the pandemic, travelers are gaining confidence and starting to reclaim their lives. Delta is accelerating recovery with our brand stronger and more trusted than ever before,” said Delta CEO Ed Bastian in a profit statement. “If the recovery trends continue, we expect positive cash flow generation for the June quarter and see a path to return to profitability in the September quarter as the demand recovery progresses.”

Delta said it expects second-quarter revenue to be 50% to 55% lower than the same period of 2019 at planned capacity one-third lower than two years ago. The costs, which take away from fuel costs, will rise 6% to 9% this quarter, he said.

Delta’s shares were up 1% in premarket trading after the airline reported results.

The carrier’s executives will meet with analysts at 10 a.m.ET to discuss the results.

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