Delta looks ahead to strong summer as losses continue
Delta Air Lines has reported an adjusted pre-tax loss of $3.4 billion for financial 2021. However, the figure excludes a net benefit of $3.8 billion from items primarily related to the Payroll Support Programs (PSP).
This was partially offset by equity method losses, debt extinguishment charges and special profit-sharing payment, the airline said.
On a positive note, the carrier said it generated a pre-tax profit of $386 million in the second half of 2021.
Adjusted operating revenue stood at $26.7 billion for the year.
Again, this excludes third-party refinery sales, and was 57 per cent recovered versus full year 2019 on capacity that was 71 per cent restored.
“Last year 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 United States airline to deliver profitability across the second half of the year,” said Ed Bastian, Delta chief executive.
The company had total debt and finance lease obligations of $26.9 billion with adjusted net debt of $20.6 billion at the end of December.
Bastian added: “While the rapidly spreading omicron variant has significantly impacted staffing levels and disrupted travel across the industry, Delta’s operation has stabilised 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.”