Delta Airlines is counting on earnings this summer

Delta Airlines is counting on earnings this summer

US airline Delta Airlines expects to report profit again in the third quarter. The group, like many of its peers in the industry, closed the first three months of 2021 with a significant loss due to the Corona crisis. But passenger numbers have begun to recover, especially on domestic flights, as more and more people in the United States have been vaccinated against the Corona virus.

Currently, the number of holiday flights within the United States is 85 percent of the level before the Corona pandemic, Delta says. President Glenn Hounstein expects that more tickets will be sold to this target group in the coming months. The holiday period coincides with an ever-increasing rate of vaccination in the United States. Additionally, Delta will not block the middle seat from May, a measure to ensure passengers stay at a distance.

Combined with savings, this should generally ensure that no more money flows out of the cashier than is coming in the current second quarter. Delta managed to generate positive cash flow as early as March. In the three months through September, this should lead to an operating profit.

Continuing international travel restrictions due to Coronavirus resulted in Delta’s pre-tax adjusted loss of $ 2.9 billion in the first quarter. This negative result was corrected by, among other things, € 1.2 billion in wage subsidies from the government. Sales are under $ 4.2 billion. This is 60 percent less than in the first quarter of 2019, when there was no negative impact of the Corona virus so far.

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