Delta Air Lines reported profit, but the stock still fell

Delta air lines отчиталась о прибыли, но акции все равно упали

Авиакомпания Delta Air Lines (FROM THE) published a report for the third quarter of 2021. The carrier reported profits and warned of high fuel costs in the next quarter..

The company's total revenue amounted to 9.2 billion dollars. Operating revenue, that is, excluding fuel sales, amounted to 8.3 billion — by 34% less, than in pre-crisis 2019. The airline industry was hit hard by the coronavirus a year ago., therefore, the company compares its financial results with 2019.

Revenue from flights within the country fell by 28%, up to 5.8 billion. This is the main source of income for the company.. With flights abroad worse: here the revenue fell by 58%, up to 1.4 billion. Revenue from corporate flights fell by 60%. The company forecasts a gradual recovery of business travel in the fourth quarter to 50% from the level of 2019.

Aircraft occupancy decreased with 88 to 80%, and with it the size of operating revenue per mile - from 16.5 to 15.3 cents.

Net profit amounted to 1.2 billion. In the third quarter, the company received from the state 1.8 billion to pay benefits to dismissed and furloughed employees., therefore, adjusted profit was only 0.2 billion. In 2019, that profit was nearly eight times higher at 1.5 billion.. Operating cash flow also fell sharply - from 2.2 billion to 150 million.

According to company forecasts, in the fourth quarter passenger traffic will grow, and total revenue will decrease by about 25-30% compared to 2019. Instead of profit, the company expects a small loss. Due to rising oil prices, the cost of a gallon of fuel may increase from 2 up to 2,25—2,4 $.

Delta Air Lines' financial results beat analysts' expectations, but due to a weak outlook, the stock fell by 5,8%. Shares of American and United Airlines also fell by 3,3 and 3,6%. These airlines will report as early as next week..

Passenger transportation by destinations, million dollars

RevenueThe change
Domestic5759−28%
Atlantic730−65%
Latin America564−16%
Pacific138−80%
Total7191−37%

total revenues, million dollars

RevenueThe change
Passenger transportation7191−37%
Cargo transportation26239%
Rest170177%
Total9154−27%
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