Delta Air Lines releases 2021 financial results       

American Delta Air Lines has reported financial results for the December quarter and full year 2021 and provided its outlook for the March quarter, 2022.

According to Delta’s Chief Executive Officer, Ed Bastian, “2021 was a year like no other for Delta, with significant progress in our recovery supported by growing brand preference, enabling us to be the only major U.S. airline to deliver profitability across the second half of the year. As always, our people drove this success which is why we were happy to announce a special profit-sharing payment for all eligible employees.

“While the rapidly spreading omicron variant had significantly impacted staffing levels and disrupted travel across the industry, Delta’s operation had stabilised over the last week and returned to pre-holiday performance. Omicron is expected to temporarily delay the demand recovery by 60 days, but as we look past the peak, we are confident in a strong spring and summer travel season with significant pent-up demand for consumer and business travel.”

Announcing its December quarter 2021 financial results, Delta recorded adjusted pre-tax income of $170 million excluding a net impact of $564 million primarily in equity method losses, mark-to-market adjustments on investments and special profit-sharing payment.

The airline also recorded adjusted operating revenue of $8.4 billion, which excluded third-party refinery sales, meaning 74 per cent recovered versus December quarter, 2019 on capacity that was 79 per cent restored with a total operating expense decrease of $833 million compared to the December quarter, 2019.

For the full year 2021 financial results, the airline had adjusted pre-tax loss of $3.4 billion excluding a net benefit of $3.8 billion from items primarily related to the Payroll Support Programs (PSP), partially offset by equity method losses, debt extinguishment charges and special profit-sharing payment.

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It generated a pre-tax profit of $1.1 billion in the second half of 2021. Excluding PSP, mark-to-market adjustments, equity method losses and debt extinguishment charges reported an adjusted pre-tax profit of $386 million in the second half of 2021.

While adjusted operating revenue of $26.7 billion, which excluded third-party refinery sales, was 57 per cent recovered versus full year 2019 on capacity that was 71 per cent restored, total operating expense, which included $4.5 billion of benefit related to PSP, decreased $12.4 billion compared to 2019.

Adjusted for the benefits related to PSP and costs from third-party refinery sales, total operating expense, adjusted decreased $10.9 billion or 27 per cent versus 2019 just as remuneration from American Express for full year 2021 was $4.0 billion, 98 per cent restored compared to full year 2019.

The carrier invested $2.9 billion back in the business and reduced financial obligations by $7 billion, including fully funding the pension plans on a Pension Protection Act (PPA) basis with a total debt and finance lease obligations of $26.9 billion with adjusted net debt of $20.6 billion at the end of December 2021.