Late-Quarter Surge Breeds Optimism for Delta Air Lines

Michael Wildes

Wednesday, April 13, 2022 at 05:31 PM ET

Verified

Delta lost $940 million in the first quarter of 2022, operating on revenue of $9.3 billion. [Courtesy: Delta Airlines]

Key Takeaways:

Delta Air Lines expects to return to profitability in Q2 2022, driven by a significant rebound in consumer travel demand observed towards the end of Q1, after an initial sluggish start.
Despite a $940 million loss in Q1 and sharply rising fuel costs, Delta's adjusted revenue for Q1 surpassed expectations, and they project Q2 revenue to recover 97% of 2019 levels.
To meet robust demand and offset higher fuel prices, Delta is ramping up its summer schedule to 84% of 2019 capacity, relying on its refinery, and has proactively hired over 15,000 employees, anticipating consumers will prioritize travel experiences.

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Despite a sluggish start to the quarter due to travel restrictions and increasing fuel prices, Delta Air Lines (NYSE: DAL) CEO Ed Bastian said Wednesday that strong numbers late in the quarter prove that travel demand is rebounding and his company is confident that it will turn a profit in the second quarter.

“Consumer demand accelerated through the quarter, highlighted by solid spring break performance. As omicron faded, offices reopened, and travel restrictions were lifted, resulting in an improvement in business travel demand and a stronger fare environment,” the airline said in a statement.