Delta Air Lines beats by $0.15, beats on revs; says recent rise in fuel prices will pressure its ability to remain profitable for the December quarter
- Reports Q3 (Sep) earnings of $0.30 per share, excluding non-recurring items, $0.15 better than the S&P Capital IQ Consensus of $0.15; revenues rose 199.0% year/year to $9.15 bln vs the $8.46 bln S&P Capital IQ Consensus.
- Adjusted pre-tax income of $216 million excludes a $1.3 billion net benefit related to the second payroll support program extension (PSP3) partially offset by debt extinguishment charges and mark-to-market adjustments on our investments.
- Domestic passenger revenue was 72 percent restored compared to September quarter 2019, a 17 point improvement in the rate of recovery versus the June quarter 2021. International passenger revenue recovered to 42 percent of September quarter 2019 levels, a 16 point improvement sequentially.
- Total operating expenses, adjusted of $7.8 billion in the September quarter 2021 increased 12 percent sequentially, primarily driven by non-fuel costs from the continued restoration of the airline. Compared to September quarter 2019, total operating expenses, adjusted were down $2.6 billion or 25 percent.
- Q4 Outlook: Revenue Recovered to low 70s percentage; capacity: 80% restored. "While demand continues to improve, the recent rise in fuel prices will pressure our ability to remain profitable for the December quarter. As the recovery progresses, I am confident in our path to sustained profitability as we continue to provide best-in-class service to our customers, strengthen preference for our brand, while creating a simpler, more efficient airline."
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