NYSE$DAL

Delta Air Lines Inc (DE) · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Delta Air Lines reported a GAAP pre-tax loss of $607 million and an adjusted pre-tax loss of $422 million for the March quarter 2020, while also outlining its response to the COVID-19 global pandemic.

Delta Air Lines announced its March quarter 2020 financial results, revealing a GAAP pre-tax loss of $607 million or $0.84 per share and an adjusted pre-tax loss of $422 million or $0.51 per share. The company is responding to the COVID-19 global pandemic by prioritizing safety, protecting its business, and bolstering liquidity.

  • Expected June quarter revenues to decline by 90% compared to the previous year due to the impact of government travel restrictions and stay-at-home orders.
  • Cash burn was $100 million per day at the end of March and is expected to moderate to approximately $50 million per day by the end of the June quarter through decisive actions.
  • The company expects to end the June quarter with approximately $10 billion in liquidity.
  • Delta is taking decisive action to prioritize the safety of its employees and customers while protecting its business and bolstering liquidity.

Headline financials

Total Revenue

$8.59B

Previous: $10.5B-18.0%
EPS (adj)

-$0.51

Previous: $0.96-153.1%
Free Cash Flow

-$534M

Previous: $730M-173.2%
Net Income

-$534M

Previous: $730M-173.2%
Operating Income

-$410M

Previous: $1.02B-140.2%
Gross Profit

-$2.16B

Previous: -$2.5B+13.5%
Cash & Equivalents

$5.97B

Previous: $1.91B+212.4%
Total Assets

$68.7B

Previous: $61.8B+11.2%

Revenue & EPS history

Delta · Revenue · Quarterly

$8.59B

Q1 2020-18%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Delta · $470M total across 1 segment · Q1 2021

  • Cargo Revenue
    $470M

Forward guidance

Delta anticipates a significant reduction in expenses and aims to moderate cash burn through various measures.

Tailwinds

  • Expected June quarter total expenses to decline by approximately 50%, or $5 billion, over prior year due to reduced capacity.
  • Lower fuel costs.
  • Cost initiatives.
  • Payroll Support Program under the CARES Act will help safeguard Delta jobs.
  • Decisive actions are expected to moderate cash burn to approximately $50 million per day by the end of the June quarter.

Headwinds

  • Government travel restrictions and stay-at-home orders have severely impacted near-term demand for air travel.
  • Expected June quarter revenues to decline by 90 percent, compared to a year ago.
  • Significant impact of COVID-19 on Delta’s revenue.
  • Burning $100 million per day at the end of March.
  • Uncertainty in economic conditions and regulatory environment in the United Kingdom related to the exit of the United Kingdom from the European Union.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.0%

Avg return

30 days after

61%

42 / 69 earnings

Positive

+23.4%

Q1 2025

Best reaction

-11.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.8%+2.2%+11.8%
Q4 2025-2.6%-0.8%-2.2%
Q3 2025+4.3%+7.3%+3.1%
Q2 2025-0.8%+1.8%+0.8%
Q1 2025+23.4%+12.3%+34.7%
Q4 2024+6.0%+6.6%+10.9%
Q3 2024+0.7%+3.4%+19.8%
Q2 2024-6.9%-1.8%-16.1%
Q1 2024+0.7%-1.4%+11.2%
Q4 2023-11.3%-12.1%-4.1%
Q3 2023-5.2%-3.6%-5.3%
Q2 2023-3.0%+0.9%-7.9%
Q1 2023+0.1%+4.8%-1.5%
Q4 2022-3.4%-3.1%-3.6%
Q3 2022+6.4%+10.1%+21.3%
Q2 2022-4.2%+0.2%+11.0%
Q1 2022+9.7%+9.1%-0.8%
Q4 2021-0.7%-2.6%+4.2%
Q3 2021-5.4%-5.8%-3.0%
Q2 2021+0.0%-6.7%-3.5%
Q1 2021-3.2%-7.7%-3.9%
Q4 2020-1.2%-0.3%+7.0%
Q3 2020-2.7%-3.6%+5.3%
Q2 2020+6.6%+0.9%+7.0%
Q1 2020-2.7%-4.1%-1.8%
Q4 2019+3.6%+4.3%-0.6%
Q3 2019-1.8%-0.5%+6.8%
Q2 2019+3.7%+6.2%+0.1%
Q1 2019+2.5%+0.9%-0.6%
Q4 2018-0.5%+0.8%+5.7%
Q3 2018+4.7%+6.8%+14.0%
Q2 2018+1.9%+2.6%+9.8%
Q1 2018+2.8%+6.0%+2.8%
Q4 2017+7.1%+6.2%-9.7%
Q3 2017+0.8%+1.7%-7.2%
Q2 2017-0.6%-2.7%-10.8%
Q1 2017-2.8%-2.1%+8.2%
Q4 2016-0.4%-2.2%-4.2%
Q3 2016+2.0%+0.5%+18.1%
Q2 2016+1.1%+2.5%-8.1%
Q1 2016-1.1%
Q4 2015+2.7%
Q3 2015+2.5%
Q2 2015+1.9%
Q1 2015+4.4%
Q4 2014+7.3%
Q3 2014+6.2%
Q2 2014+1.0%
Q1 2014+5.1%
Q4 2013+5.7%
Q3 2013+3.7%
Q2 2013+5.0%
Q1 2013+8.8%
Q4 2012+1.2%
Q3 2012-5.0%
Q2 2012+0.9%
Q1 2012-0.8%
Q4 2011+0.3%
Q3 2011-3.8%
Q2 2011-4.9%
Q1 2010+7.1%
Q1 2011-1.2%
Q4 2008-1.7%
Q4 2010-1.7%
Q3 2009+1.1%
Q3 2010+1.1%
Q4 2009+2.3%
Q2 2009+2.3%
Q2 2010+2.3%

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