Investor Alert

Market Pulse Archives

Oct. 13, 2021, 8:52 a.m. EDT

Delta reports first adjusted profit since before the pandemic, but fuel price rise could pressure profitability; stock falls

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Delta Air Lines Inc. (DAL)
  • X
    U.S. Global Jets ETF (JETS)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Shares of Delta Air Lines Inc. /zigman2/quotes/200327741/composite DAL -0.38% dropped 1.5% in premarket trading Wednesday, after the air carrier reported its first adjusted profit since the COVID-19 pandemic, and which was double what was expected, but said the recent rise in fuel prices will pressure its ability to remain profitable in the fourth quarter. Net income was $1.21 billion, or $1.89 a share, compared with $1.50 billion, or $2.31 a share, in the same period in pre-pandemic 2019. Excluding nonrecurring items, such as a $1.3 billion benefit related to government payroll support, adjusted earnings per share came in at 30 cents, beating the FactSet consensus of 15 cents. Total revenue was $9.15 billion, down 27% from the same period in 2019, but beat the FactSet consensus of $8.38 billion. Load factor fell to 80% from 88%, but beat the FactSet consensus of 78%. Capacity for the quarter was 71% of what it was in the same 2019 quarter. Adjusted fuel price was $1.94 per gallon, down 8% from the second quarter, but that is expected to rise to $2.25 to $2.40 per gallon i the fourth quarter. The company also expects fourth-quarter capacity to be 80% of 2019 levels. "Generating a profit for the quarter even with a majority of our corporate and international customers still to return is a great achievement," said President Glen Hauenstein. He expects holiday travel demand to be "robust," and expects improvement in corporate and international demand. Delta's stock has gained 8.3% year to date through Tuesday, while the U.S. Global Jets ETF /zigman2/quotes/207744796/composite JETS +0.10% has tacked on 7.2% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.32% has advanced 15.8%.

$ 36.24
-0.14 -0.38%
Volume: 21.27M
Nov. 29, 2021 4:00p
P/E Ratio
Dividend Yield
Market Cap
$23.28 billion
Rev. per Employee
US : U.S.: NYSE Arca
$ 20.55
+0.02 +0.10%
Volume: 12.24M
Nov. 29, 2021 4:00p
+60.65 +1.32%
Volume: 2.50B
Nov. 29, 2021 4:57p

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.