July 21, 2021 8:00 AM
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3
 min

Demand for passenger air travel returned to pre-pandemic level

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Delta's 2Q21 results were better than expected, driven by higher air ticket prices and increased demand for cargo transportation, which significantly supported the company's top line. According to a press release from the air carrier, revenue fell to $ 7.126 billion from $ 12.536 billion two years earlier (2Q19), which was above the market consensus of $ 6.2 billion. Net profit in April-June amounted to $ 652 million, or $ 1.02 per calculation. per share, up from $ 1.44 billion, or $ 2.21 per share, received in the same period in 2019. Excluding one-off income and expenses, including government support, the company posted a loss of $ 1.07 per share versus earnings of $ 2.35 per share in the year before last, which was also better than market expectations. The market consensus was for an adjusted loss of $ 1.38 per share.

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According to the results of the third quarter, the airline plans to receive revenue already 30–35% lower than the pre-pandemic level. We believe that the company will continue to demonstrate improvement in financial performance amid recovery in demand in the corporate segment. Delta management named New York and Boston leaders in improving business activity: overall corporate demand recovered markedly in June compared to March.

We also see a recovery in the passenger air traffic segment. In early July, it is noted that the number of Americans using air travel has risen to its highest since the start of the coronavirus pandemic. On Friday, July 2, just under 2.2 million people passed security controls at American airports, the highest since early March 2020. More than 2 million passengers were recorded at American airports in June and July, according to the Transportation Security Administration. Airline officials say domestic tourist travel demand has returned to 2019 levels.

Delta Air Lines is the U.S. global airline leader in safety, innovation, reliability and customer experience. Delta has for a decade led the airline industry in operational excellence while maintaining our reputation for award-winning customer service. Delta is a founding member of the SkyTeam global alliance.

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