Delta Air Lines (DAL) Reports Wider-Than-Expected Loss For Q1

Delta Air Lines Inc. (NYSE:DAL) commenced its operations as an aerial crop-dusting company way back in 1924. A few years later, the firm started passenger routes in the United States. The company transformed into a full passenger-service airline by 1946. It was the first airline to offer uninterrupted flights between Chicago and Miami. Moving forward, Delta commenced international routes during the 1950s following its merger with Chicago and Southern Air Lines. Today, Delta is one of the world’s leading airlines offering nonstop flights across six continents.

Like rivals, Delta also experienced heavy losses over the past year due to the negative impact of the Covid-19 on its operations. The company was hopeful for a strong recovery earlier this year. However, the resurgence of the coronavirus cases during the quarter continued to weigh on its profitability.

The weak demand also affected Delta’s financial performance for the first quarter. The company recently reported a loss of $1.18 billion, or $1.85 per share for the three months ended March 31, as compared to earnings of $730 million, or $1.09 per share in the year-ago quarter.

Excluding certain nonrecurring items, the adjusted of $3.55 per share was wider than the loss of $3.13 per share estimated by analysts. Revenue tumbled 60 percent on a year-over-year basis to $4.15 billion but surpassed the consensus forecast of $3.94 billion.

Speaking on the results, CEO Ed Bastian said in a statement, “A year after the onset of the pandemic, travelers are gaining confidence and beginning to reclaim their lives. Delta is accelerating into the recovery with our brand stronger and more trusted than ever before. Thanks to the incredible efforts of our people, we achieved positive daily cash generation in the month of March, a remarkable accomplishment considering our middle seat block and the low level of demand for business and international travel.  If recovery trends hold, we expect positive cash generation for the June quarter and see a path to return to profitability in the September quarter as the demand recovery progresses.”