April 16 - Delta Air Lines reported financial results for the March quarter 2021 and provided its outlook for the June quarter 2021. Highlights of the March quarter 2021 results, including both GAAP and adjusted metrics, are on page five and are incorporated here.

 

“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,” said Ed Bastian, Delta’s chief executive officer. “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.”

 

March Quarter Financial Results

• Adjusted pre-tax loss of $2.9 billion excludes $1.2 billion of benefit related to the first payroll support program extension (PSP2), which is partially offset among other items by the debt extinguishment charges incurred when prepaying Delta's $1.5 billion slots, gates and routes term loan

• Adjusted operating revenue of $3.6 billion declined 65 percent on 55 percent lower sellable capacity (see Note A) versus March quarter 2019

• Total operating expense, which includes the $1.2 billion benefit related to PSP2, decreased $3.9 billion over the March quarter 2019. Adjusted for the benefit related to PSP2 and third-party refinery sales, total operating expense decreased $3.1 billion or 33 percent in the March quarter compared to March quarter 2019, driven by capacity- and revenue-related expense reductions, lower salaries and related costs and strong cost management across the business

• During the March quarter, cash burn (see Note B) averaged $11 million per day and turned positive in the month of March with cash generation of $4 million per day

• At the end of the March quarter, the company had $16.6 billion in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities. The company had total debt and finance lease obligations of $29.0 billion with adjusted net debt of $19.1 billion, which was higher than prior guidance as a result of aircraft financing decisions

 

Read the full release, including the reconciliations of GAAP to non-GAAP financial measures: Delta Air Lines March Quarter 2021 Financial Results

 

 

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