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Dec 31, 2020
Delta Q4 2020 Earnings Report
Delta Air Lines reported a GAAP pre-tax loss and loss per share on total revenue for the December quarter 2020.
Key Takeaways
Delta Air Lines announced December quarter and full year 2020 financial results, with a focus on recovery and a return to revenue growth, profitability, and free cash generation. The company ended the year with $16.7 billion in liquidity and reduced average daily cash burn.
Adjusted operating revenue decreased by 69% compared to the prior year period.
Passenger revenues declined 74% due to a 62% reduction in sellable capacity.
Non-ticket revenues outperformed passenger revenues, with cargo revenues up 10%.
Average daily cash burn reduced to $12 million in the December quarter.
Revenue by Segment
Forward Guidance
Delta anticipates three distinct phases in 2021: choppy demand recovery, an inflection point, and a sustained demand recovery as customer confidence increases with widespread vaccinations and office re-openings.
Positive Outlook
- Matching sellable capacity to expected demand.
- Long-term competitive cost structure will aid in the recovery of the airline
- Extended the use of certain travel credits through December 2022
- The company anticipates receiving approximately $3 billion from the U.S. Treasury under the PSP extension in the March quarter.
- The company expects to end the March quarter with approximately $18 to $19 billion in liquidity.
Challenges Ahead
- Early part of the year will be characterized by choppy demand recovery
- Booking curve that remains compressed
- Challenges continue in 2021
- Global pandemic severely affected air travel
Historical Earnings Impact
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Avg. Return Before/After Earnings
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