• Joe Breitfeller

Delta Air Lines Reports Adjusted Third Quarter Net Profit of $194 Million or $0.30 Per Diluted Share

Delta Air Lines has reported a third quarter GAAP pre-tax income of $1.5 billion or $1.89 per diluted share on revenue of $9.2 billion. The airline’s adjusted pre-tax income was $216 million or $0.30 per share on an adjusted operating revenue of $8.3 billion.


Delta Air Lines Reports Third Quarter 2021 Financial Results - Courtesy Delta Air Lines

On Wednesday (October 13, 2021), Delta Air Lines reported their third quarter 2021 financial results for the period ending September 30, 2021. The carrier reported an adjusted pre-tax income of $216 million or $0.30 per diluted share and a net profit of $194 million, on adjusted operating revenue of $8.3 billion. The adjusted pre-tax income of $216 million excludes a $1.3 billion net benefit under the U.S. Cares Act third payroll support program extension (PSP3), partially offset by debt extinguishment charges and mark-to-market adjustments on investments. When government payroll support benefits are included, Delta reported a third quarter 2021 GAAP pre-tax income of $1.5 billion or $1.89 per diluted share on total revenue of $9.2 billion. At September 30, 2021, the company had $15.8 billion in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities.


In Wednesday’s announcement, Delta Air Lines’ Chief Executive Officer, Ed Bastian, said,


“Our September quarter marked an important milestone in our recovery, with our first quarterly profit since the start of the pandemic. Our revenues reached two-thirds of 2019 levels thanks to the industry-leading operational performance our people delivered through a busy summer, once again showing why they are the best in the business.


“While demand continues to improve, the recent rise in fuel prices will pressure our ability to remain profitable for the December quarter. As the recovery progresses, I am confident in our path to sustained profitability as we continue to provide best-in-class service to our customers, strengthen preference for our brand, while creating a simpler, more efficient airline.”

For the third quarter, Delta’s adjusted operating expenses declined 25 percent compared to Q3 2019. The company’s cost per available seat mile, excluding fuel (CASM-Ex), increased 15 percent compared to the same period in 2019. In the third quarter, Delta received remuneration from American Express related to their long-term co-branded credit card partnership of $1.0 billion, a one percent increase versus the third quarter of 2019. Compared to the second quarter, Delta’s system yields improved four percent, while load factors improved 11 points to 80 percent. The airline's cargo revenue increased year-over-two by 39 percent to $262 million on improved yield strength.


At September 30, 2021, Delta Air Lines had debt and lease financing obligations totaling $27.8 billion, and an adjusted net debt of $27.8 billion, with a weighted average interest rate of 4.2 percent. The company has reduced their total financial obligations by $12 billion since October 2020 via pension contributions and the paydown of debt. Third quarter operating cash flow was $151 million, while free cash flow was ($463) million and net CAPEX totaled $619 million. At the end of the third quarter, Delta’s Air Traffic Liability was $6.4 billion, a decrease of $562 million compared to the close of the second quarter, with travel credits accounting for approximately 40 percent of the total.


Delta Air Lines' Third Quarter 2021 Financial Results - Courtesy Delta Air Lines

Today (October 13, 2021) Delta also announced the acquisition of two used Airbus A350s, with deliveries expected during Q4 2021. This year, the airline finalized several fleet transactions, including the exercise of 55 A321neo options scheduled for delivery between 2022 and 2027, as well as agreements to acquire 38 gently used aircraft in the secondary market.


Delta Air Lines (NYSE:DAL) is the global U.S. airline leader in safety, innovation, reliability and customer experience. For the last decade, the carrier has led the industry in operational excellence, while maintaining their reputation for award-winning customer service.


In trading Wednesday morning (October 13, 2021), shares in Delta Air Lines, Inc. (NYSE: DAL), were down 3.40 percent at $42.05/share (9:41 AM EDT).



Source: Delta Air Lines