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Mar 31, 2021
Delta Q1 2021 Earnings Report
Delta's Q1 2021 earnings were impacted by the COVID-19 pandemic, but the company saw positive cash generation in March and expects further recovery in Q2.
Key Takeaways
Delta Air Lines reported a GAAP pre-tax loss of $1.5 billion and a loss per share of $1.85 on total revenue of $4.2 billion for the March quarter 2021. The company saw an acceleration in demand, leading to positive cash generation in March, and anticipates a return to profitability in the September quarter if recovery trends continue.
Achieved positive daily cash generation in March, a critical milestone in recovery.
Expect positive cash generation for the June quarter.
See a path to return to profitability in the September quarter as demand recovers.
Domestic leisure bookings recovered to 85% of 2019 levels.
Delta
Delta
Delta Revenue by Segment
Revenue by Segment
Cargo Revenue
CapyFin.com Forward Guidance
Delta anticipates significant sequential improvement in revenue for the June quarter as leisure demand accelerates and capacity increases with the removal of seat blocks. They expect to narrow their adjusted pre-tax loss to $1 to $1.5 billion and aim for a breakeven result in June.
Positive Outlook
- Significant sequential improvement in revenue expected in the June quarter.
- Leisure demand is accelerating into the peak summer period.
- Capacity will be added efficiently with the removal of seat blocks on May 1.
- Revenues are expected to recover to 45 to 50 percent of 2019 levels.
- Narrowing adjusted pre-tax loss to $1 to $1.5 billion in the June quarter.
Challenges Ahead
- Corporate demand declined 80 percent versus the March quarter 2019.
- International passenger revenue remains limited, down 81 percent compared to March quarter 2019.
- Adjusted fuel price of $1.91 per gallon was up 33 percent for the quarter compared to the December quarter 2020.
- Non-fuel expenses were higher than projected due to employee-related COVID prevention expenses and recovery-related costs.
- Still incurring an adjusted pre-tax loss of $1 to $1.5 billion in the June quarter.