Delta Air Lines saw its earnings return to negative territory in the fourth quarter of 2021 due to the impact of the COVID-19 Omicron variant on travel, the carrier announced in a filing.
- Delta reported a net loss of $408 million or diluted loss per share of $0.64, following the $1.212 billion net income recorded in the third quarter. This brought the full-year net income to $280 million.
- President Glen Hauenstein said the recent resurgence of COVID cases due to the Omicron variant will delay the recovery of demand, which is now seen to resume starting from the President’s Day weekend.
- The carrier expects first-quarter 2022 capacity at 83% to 85% of the same quarter in 2019, revenue at 72% to 76%, and capital expenditures for the year at $1.6 billion.
- Chief Financial Officer Dan Janki said the carrier is likely to record losses in January and February 2022 before returning to profitability in March. A “healthy profit” is expected in the second quarter.
The company ended 2021 with total debt and finance lease obligations worth $26.9 billion. DAL is up 1.63%.