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  • Joe Breitfeller

Delta Air Lines Reports Full Year 2021 Adjusted Pre-Tax Loss of $3.4 Billion on Revenue of $26.7 B

Delta Air Lines has reported a fourth quarter 2021 GAAP pre-tax loss of $395 million or (0.64) per share on operating revenue of $9.5 billion. The carrier’s Q4 adjusted pre-tax income was $170 million or $0.22/share on adjusted operating revenue of $8.4 billion.


Delta Air Lines Airbus A321 - Courtesy Airbus

On Thursday (January 13, 2022), Delta Air Lines announced their fourth quarter and full year financial results for the period and year ending December 31, 2021. The carrier reported a fourth quarter 2021 GAAP pre-tax loss of $395 million or ($0.64) per share on total operating revenue of $9.5 billion. Delta’s adjusted fourth quarter adjusted pre-tax income was $170 million or $0.22 per diluted share on an adjusted operating revenue of $8.4 billion. For the full year 2021, the company reported an adjusted pre-tax loss of $3.4 billion on adjusted operating revenue of $26.7 billion. At December 31, 2021, Delta had $14.2 billion in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities.


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


“2021 was a year like no other for Delta, with significant progress in our recovery supported by growing brand preference, enabling us to be the only major U.S. airline to deliver profitability across the second half of the year. As always, our people drove this success, which is why we were happy to announce this morning a special profit-sharing payment for all eligible employees.


“While the rapidly spreading omicron variant has significantly impacted staffing levels and disrupted travel across the industry, Delta's operation has stabilized over the last week and returned to pre-holiday performance. Omicron is expected to temporarily delay the demand recovery 60 days, but as we look past the peak, we are confident in a strong spring and summer travel season with significant pent-up demand for consumer and business travel.”


Delta Air Lines' Fourth Quarter and Full Year 2021 Financial Results - Courtesy Delta Air Lines

Delta’s adjusted pre-tax income for Q4 2021 of $170 million excludes a net impact of $564 million, primarily equity method losses, mark-to-market adjustments on investments, and a special profit-sharing payment. During the fourth quarter, the company’s remuneration from American Express was $1.2 billion, an 11 percent increase versus Q4 2019. The carrier's Q4 total operating expenses declined year-over-two by $833 million. When adjusted for costs from third-party refinery sales, Delta’s total operating costs declined $1.9 billion or 19 percent compared to the fourth quarter of 2019.


The full-year pre-tax loss of $3.4 billion excludes a net benefit of $3.8 billion, primarily related to the Payroll Support Programs (PSP), partially offset by equity method losses, debt extinguishment charges and a special profit-sharing payment. The company’s total adjusted Q4 operating revenue of $26.7 billion, excluding third-party refinery sales, was 57 percent recovered compared to FY 2019 on a 71 percent capacity restoration.


Full year 2021 operating expenses, including $4.5 billion in PSP benefits, decreased $12.4 billion versus 2019. When adjusted for PSP benefits and costs from third-party refinery sales, total operating expenses decreased $10.9 billion or 27 percent compared to 2019. 2021 full year compensation from American Express totaled $4.0 billion, 98 percent restored versus FY 2019. At December 31, 2021, Delta Air Lines had debt and finance lease obligations of $26.9 billion, and an adjusted net debt of $20.6 billion.


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 pre-market trading on Thursday morning (January 13, 2022), shares in Delta Air Lines, Inc. (NYSE: DAL) were down 1.50 percent to $40.61/share (7:43 AM EST).



Source: Delta Air Lines/PRNewswire