NYSE$DAL

Delta Air Lines Inc (DE) · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Delta's Q1 2021 earnings were impacted by the COVID-19 pandemic, but the company saw positive cash generation in March and expects further recovery in Q2.

Delta Air Lines reported a GAAP pre-tax loss of $1.5 billion and a loss per share of $1.85 on total revenue of $4.2 billion for the March quarter 2021. The company saw an acceleration in demand, leading to positive cash generation in March, and anticipates a return to profitability in the September quarter if recovery trends continue.

  • Achieved positive daily cash generation in March, a critical milestone in recovery.
  • Expect positive cash generation for the June quarter.
  • See a path to return to profitability in the September quarter as demand recovers.
  • Domestic leisure bookings recovered to 85% of 2019 levels.

Headline financials

Total Revenue

$4.15B

Previous: $8.59B-51.7%
EPS (adj)

-$3.55

Previous: -$0.51-596.1%
Free Cash Flow

-$1.18B

Previous: -$534M-120.4%
Net Income

-$1.18B

Previous: -$534M-120.4%
Operating Income

-$1.4B

Previous: -$410M-241.0%
Gross Profit

-$1.61B

Previous: -$2.16B+25.3%
Cash & Equivalents

$8.46B

Previous: $5.97B+41.8%
Total Assets

$73.1B

Previous: $68.7B+6.3%

Revenue & EPS history

Delta · Revenue · Quarterly

$4.15B

Q1 2021-51.7%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

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

  • Cargo Revenue
    $470M

Forward guidance

Delta anticipates significant sequential improvement in revenue for the June quarter as leisure demand accelerates and capacity increases with the removal of seat blocks. They expect to narrow their adjusted pre-tax loss to $1 to $1.5 billion and aim for a breakeven result in June.

Tailwinds

  • Significant sequential improvement in revenue expected in the June quarter.
  • Leisure demand is accelerating into the peak summer period.
  • Capacity will be added efficiently with the removal of seat blocks on May 1.
  • Revenues are expected to recover to 45 to 50 percent of 2019 levels.
  • Narrowing adjusted pre-tax loss to $1 to $1.5 billion in the June quarter.

Headwinds

  • Corporate demand declined 80 percent versus the March quarter 2019.
  • International passenger revenue remains limited, down 81 percent compared to March quarter 2019.
  • Adjusted fuel price of $1.91 per gallon was up 33 percent for the quarter compared to the December quarter 2020.
  • Non-fuel expenses were higher than projected due to employee-related COVID prevention expenses and recovery-related costs.
  • Still incurring an adjusted pre-tax loss of $1 to $1.5 billion in the June quarter.

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 2021

Historical avgQ1 2021

+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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