With taxpayers’ help, Delta posts $652mn profit in Q2
Delta Air Lines is reporting a $652 million profit in the second quarter, helped by hordes of vacation travelers in the U.S. and money from taxpayers, positioning the airline for stronger results once business and international flying recover from the pandemic.
However, Wednesday’s financial report from Delta - the first U.S. carrier to post quarterly numbers - shows that airlines still face turbulence as they try to rebound from their worst year ever.
Without $1.5 billion in federal pandemic relief and other one-time events, the Atlanta airline would have posted an adjusted loss of $678 million.
Crowds at the nation’s airports are approaching 2019 levels, but Delta’s revenue remains halved compared with quarters before the pandemic, after excluding sales from its fuel refinery. The company expects costs to rise as it rebuilds its operation, including hiring and training employees to handle the growing number of passengers.
“We still have a long ways to go,” CEO Ed Bastian said in an interview, “but the business is in a much, much better place than it was 90 days ago. We posted a solid profit in the month of June, and it augers well for where we’re going this summer.”
Bastian predicted that the airline - which lost more than $12 billion last year - will be profitable in both the third and fourth quarters, with third-quarter revenue down a more manageable 30% to 35% compared with 2019.
Delta was the most profitable U.S. airline going into the pandemic, and it is likely to emerge from virus outbreak at or near the front of the pack. Other carriers are looking healthier, too. (AP)