Delta Air Lines Q2 results: ‘it’s a really strong quarter’

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Delta Air Lines Inc (NYSE: DAL) on Wednesday reported quarterly revenue that topped 2019 levels. Shares are still down 6.0% on weaker-than-expected Q2 profit.

Delta Air Lines Q2 results

Net income printed at $735 million versus $1.44 billion in Q2 of 2019Per-share earnings of $1.15 was nearly 50% down on a year-over-two-year basisAdjusted for one-time items, EPS stood at $1.44, as per the earnings press releaseAt $13.82 billion, quarterly revenue was up 10.3% versus two years agoFactSet consensus was for $1.73 of adjusted EPS on $12.37 billion in revenue

Other notable figures

Other notable figures in the earnings report include an 18.2% increase (versus 2019) in total operating expenses, much of which was related to higher jet fuel prices. At 87%, load factor was better-than-consensus but down 1.0% from 2019.

Free cash flow came in at $1.60 billion. On CNBC’s “Squawk Box”, CEO Ed Bastian said:

Compared to 2019, the June quarter, it’s only five points off where we were. Fuel prices are twice what they were. We’re only restored about 82% of our capacity relative to 2019. So, there’s a lot of moving parts but you put it all together, it’s a really strong quarter.

Delta Air Lines future outlook

For the current fiscal quarter, Delta Air Lines forecasts its revenue to be up 1.0% to 5.0% from 2019 levels. This compares to analysts at 0.3% increase only. The chief executive added:

We’ve taken the steps needed to improve the quality of service. We’re running a great operation for the first 11 days of July. We’re at 99.2% completion rate and the last seven days of that period, we only had 25 cancellations worldwide against over 30,000 departures. So, we’re delivering and that’s promising for Q3 as we look forward.

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