Delta Air Lines posts first pandemic-era quarterly profit thanks to US taxpayers

Air carrier Delta Air Lines posted its first quarterly profit since the Covid-19 pandemic decimated the industry over a year ago on Wednesday, with vacation travellers and US taxpayer funds helping to offset weak corporate and international travel demand.

Delta reported second-quarter earnings of $652.0m. However, without $1.5bn worth of federal pandemic relief and assorted one-time events, the airline would have delivered an adjusted loss of $678.0m, or $1.07 per share, for the period.

When excluding sales from its fuel refinery, revenues were $6.3bn, $100.0m better than expected but down 49% when compared to the second quarter of 2019.

Delta cut its labor and profit sharing costs by 36%, more than $1.0bn, and spent $804.0m less on fuel than it did two years earlier.

The Atlanta-based company also cautioned that, even as airport crowds begin to return to pre-pandemic levels, it also expects costs to rise as a result of efforts to rebuild its operations - including hiring and training new employees.

As of 1355 BST, Delta shares were up 1.74% in pre-market at $42.05 each.