Delta Air Lines reported higher-than-expected quarterly profit on Thursday thanks to strong holiday travel demand, but warned of a loss in the quarter through March due to disruptions caused by the omicron variant of the coronavirus.
“Despite expectations for a loss in the March quarter, we remain positioned to generate a healthy profit in the June, September and December quarters, resulting in a utility significant in 2022,” Dan Janki, Delta’s chief financial officer, said in a statement.
Delta said the Omicron variant will likely delay recovery in demand for travels in 60 days, but expect the rally to resume around the Presidents Day holiday in February.
In an interview, Chief Executive Ed Bastian said bookings for international travel were down, but he seemed confident the transatlantic market would have a “very strong” spring-summer travel period once the restrictions are lifted. border restrictions generated by omicron.
“There is a huge amount of pent-up demand,” Bastian told Reuters. “It’s going to be very active.” He expects business travel to pick up in mid-February.
The Atlanta-based airline’s adjusted profit for the quarter through December was 22 cents a share, beating analysts’ average estimate of 14 cents, according to IBES data from Refinitiv, marking the second consecutive profitable quarter.
The company, whose shares were up 1.7% at $41.32 at the open on Wall Street, estimates revenue in the March quarter will recover 72% to 76% from 2019 levels. It expects to restore 83% to 85%. % of capacity prior to pandemic in the current quarter.
