“With a strong rebound in demand as omicron faded, we returned to profitability in the month of March,” said CEO Ed Bastian.
Delta Air Lines (DAL) – Get Delta Air Lines, Inc. Report posted a narrower-than-expected first quarter loss Wednesday, with a big boost in revenues, thanks to what it called a “strong rebound in travel demand” as the Omicron infection wave faded over the final month of the period.
Delta said its adjusted loss for the three months ending in March was pegged at $1.23 per share, up from a loss of $3.42 per share over the same period last year and xx of the Street consensus of a $1.29 per share loss. Group revenues, Delta said, surged 125% to $9.35 billion, well ahead of analysts’ estimates of a $8.83 billion tally.
Looking into the current quarter, Delta said its sees double-digit revenue growth as travelers continue to book holiday and business trips, with overall capacity rising to around 84% of 2019 levels.
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“With a strong rebound in demand as omicron faded, we returned to profitability in the month of March, producing a solid adjusted operating margin of almost 10%,” said CEO Ed Bastian. “As our brand preference and demand momentum grow, we are successfully recapturing higher fuel prices, driving our outlook for a 12 to 14% adjusted operating margin and strong free cash flow in the June quarter”.
“I would like to thank the Delta people, who once again enabled our best-in-class operational performance, provided an unmatched customer experience and continue to power our industry leadership each and every day,” he added.
Delta Air Lines shares were marked 3.1 in pre-market trading immediately following the earnings release to indicate an opening bell price of $39.82 each.
