UPDATE: Delta Air Lines (DAL) Reports Q3 Revenues Miss
Delta Air Lines (NYSE: DAL) reported Q3 EPS of ($8.47), $5.47 worse than the analyst estimate of ($3.00). Revenue for the quarter came in at $2.6 billion versus the consensus estimate of $3.11 billion.
September Quarter Financial Results
- Adjusted pre-tax loss of $2.6 billion excludes $4.0 billion of items directly related to the impact of COVID-19 and the company's response, including fleet-related restructuring charges and charges for voluntary separation and early retirement programs for Delta employees, which were partially offset by the benefit of the CARES Act grant recognized in the quarter
- Total adjusted revenue of $2.6 billion declined 79 percent on 63 percent lower capacity versus prior year
- Total operating expense, which includes the $4.0 billion of COVID-related items described above, decreased $1.0 billion over prior year. Adjusted for those items and third-party refinery sales, total operating expense decreased $5.5 billion or 52 percent in the September quarter compared to the prior year, driven by lower capacity- and revenue-related expenses and strong cost management in the business
- At the end of the September quarter, the company had $21.6 billion in liquidity
- During the September quarter cash burn (see Note A) averaged $24 million per day, and $18 million per day for the month of September
"While our September quarter results demonstrate the magnitude of the pandemic on our business, we have been encouraged as more customers travel and we are seeing a path of progressive improvement in our revenues, financial results and daily cash burn," said Ed Bastian, Delta's chief executive officer. "The actions we are taking now to take care of our people, simplify our fleet, improve the customer experience, and strengthen our brand will allow Delta to accelerate into a post-COVID recovery."
"With a slow and steady build in demand, we are restoring flying to meet our customers' needs, while staying nimble with our capacity in light of COVID-19." said Glen Hauenstein, Delta's president. "While it may be two years or more until we see a normalized revenue environment, by restoring customer confidence in travel and building customer loyalty now, we are creating the foundation for sustainable future revenue growth."
For earnings history and earnings-related data on Delta Air Lines (DAL) click here.