Tag Archives: Delta Air Lines

Delta reports second quarter GAAP pre-tax income of $776 million

Delta Air Lines reports its financial results for the second quarter:

Delta Air Lines today reported financial results for the June quarter 2021 and provided its outlook for the September quarter 2021. Highlights of the June quarter 2021 results, including both GAAP and adjusted metrics, are on page six and are incorporated here.

  • June quarter 2021 GAAP pre-tax income of $776 million and earnings per share of $1.02 on total revenue of $7.1 billion
  • June quarter 2021 adjusted pre-tax loss of $881 million and adjusted loss per share of $1.07 on adjusted operating revenue of $6.3 billion
  • With an improving demand environment, achieved a solid pre-tax profit in the month of June and recently announced the opportunistic addition of seven A350s and 29 737-900ERs to our fleet

“With the best employees and operation in the industry and an accelerating demand environment, we achieved significant milestones in the quarter including a solid pre-tax profit in the month of June, positive free cash flow for the June quarter, and our people and our brand being recognized with the top spot in the J.D. Power 2021 Airline Study,” said Ed Bastian, Delta’s chief executive officer. “Looking forward, we are harnessing the power of our differentiated brand and resilient competitive advantages to drive towards sustainable profitability in the second half of 2021 and enable long-term value creation.”

Domestic leisure travel is fully recovered to 2019 levels and there are encouraging signs of improvement in business and international travel. With the recovery picking up steam, we are making investments to support our industry-leading operation. We are also opportunistically acquiring aircraft and creating upside flexibility to accelerate our capacity restoration in 2022 and beyond in a capital-disciplined manner,” he said.

June Quarter Financial Results

  • Adjusted pre-tax loss of $881 million excludes $1.5 billion of benefit related to the first and second payroll support program extensions (PSP2 and PSP3, respectively) and mark-to-market adjustments on our investments
  • Adjusted operating revenue of $6.3 billion, which excludes refinery sales, declined 49 percent on 39 percent lower sellable capacity (see Note A) versus June quarter 2019
  • Total operating expense, which includes $1.5 billion of benefit related to PSP2 and PSP3, decreased $4.1 billion relative to the June quarter 2019.  Adjusted for the benefit related to the PSP programs and third-party refinery sales, total operating expense decreased $3.3 billion or 32 percent in the June quarter 2021 versus the comparable 2019 period
  • Generated $1.9 billion of operating cash flow, $1.5 billion of free cash flow and $195 million of free cash flow, adjusted in the June quarter
  • At the end of the June quarter, the company had $17.8 billion in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities. The company had total debt and finance lease obligations of $29.1 billion with adjusted net debt of $18.3 billion

Aircraft Acquisition

The company recently announced it will add seven A350s and 29 737-900ER pre-owned aircraft to its fleet. This follows the announcement in April to exercise 25 A321neo options. The A350s and 737-900ERs will enter service over the next 24 months, starting in summer 2022. These fleet decisions align with the fleet renewal strategy and will drive improved unit costs going forward by replacing older, less efficient aircraft. The company will lease the seven A350s and acquire the 29 737-900ERs, driving incremental capex of approximately $700 million in the second half of this year. The company now anticipates full year 2021 total gross capex of approximately $3.2 billion

It’s official: Delta to add additional Airbus and Boeing aircraft to the fleet

Delta Air Lines has made it official with this announcement:

Delta Air Lines has entered into agreements to add 29 used Boeing 737-900ERs and lease seven used Airbus A350-900s as it continues to streamline and modernize its fleet. The 36 additional aircraft will improve fuel efficiency and enhance the customer experience, while supporting Delta’s fleet renewal strategy focused on simplification, scale, size and sustainability.

The COVID-19 pandemic provided an opportunity to simplify Delta’s fleet and accelerate retirements of 18 wide body 777s, and the MD-88 and MD-90 narrow body fleets, all of them older and less efficient. The pandemic also provided unique business opportunities to add newer generation aircraft at attractive prices.

Wide body fleet renewal is instrumental to Delta’s recovery, and will help position Delta for sustained profitability and future growth. As Delta’s flagship aircraft, the A350 provides a world-class customer experience, enhances cargo capacity, reduces unit costs and contributes to a more sustainable future.

The next-generation A350s burn 21 percent less fuel per seat than the 777s they replace. Improved fuel efficiency is paramount to Delta’s ongoing efforts to reduce its carbon emissions and its Flight to Net Zero. The acquisition of 29 narrow body 737-900ERs also complement Delta’s existing fleet.

Delta will lease the A350s through AerCap and purchase 27 of the 737-900ERs from funds managed by Castlelake, L.P., while the remaining two 737-900ERs will be financed from funds also managed by Castlelake, L.P. Both transactions are subject to closing conditions. Deliveries of the aircraft will be completed by the first quarter of 2022, and they will enter service after modifications are completed.

In addition to the seven A350s that are part of this announcement, Delta currently has 15 A350-900s in service and 20 on order. The addition of the 29 737-900ERs will bring the total to 159 in its fleet.

The agreement follows Delta’s decision in April to exercise options on 25 additional A321neo jets, which will start to deliver next year. Those aircraft offer the lowest seat costs in Delta’s fleet.

Report: Delta is preparing to add additional Airbus A350-900s and Boeing 737-900ERs

Delta Air Lines Airbus A350-941 N515DN (msn 404) AMS (Ton Jochems). Image: 954364.

Delta Air Lines aggressively retired older aircraft at the start of the COVID-19 pandemic when traffic collapsed a year ago. Now traffic is returning. Several airlines have been reluctant to take delivery of their ordered aircraft due to the pandemic and their loss of traffic.

Delta is apparently in talks to acquire these undelivered aircraft presumably at a lower price.

According to Jon Ostrower at The Current, Delta is in the final stages to acquire seven Airbus A350-900s and 29 Boeing 737-900ERs presumably ordered by and not taken up by LATAM Airlines and Lion Air.

Delta has not yet confirmed this report.

Top Copyright Photo: Delta Air Lines Airbus A350-941 N515DN (msn 404) AMS (Ton Jochems). Image: 954364.

Delta aircraft slide show:

Delta and Virgin Atlantic to return to Heathrow Terminal 3 from July 15

Delta Air Lines and Virgin Atlantic Airways are returning to their home at London Heathrow Terminal 3, which has been closed for over a year due to the COVID-19 pandemic, on July 15.

The airlines are looking forward to safely welcoming customers back onto their home turf, which has been missed by many, with their signature flair, dedicated seamless check-in area and award-winning facilities.

Delta is operating nonstop services to Heathrow from both Atlanta and New York-JFK, however U.S. entry restrictions for non-essential travelers from the U.K. still apply. Virgin Atlantic destinations including Antigua, Barbados, Grenada and Israel are all classified as “Green” on the Government’s travel list, which means customers are not required to quarantine on their return.

Delta opens a new Sky Club at FLL

Delta Air Lines has made this announcement:

Soaring floor-to-ceiling windows with runway views, thoughtful interior touches, regional artwork and a central, mezzanine-level location are just a few of the highlights that guests can look forward to in Delta’s newest Club.

 

Opening June 23 in Broward County’s Fort Lauderdale-Hollywood International Airport (FLL), the new Delta Sky Club is among the latest enhancements to open for guests in Terminal 2, which is nearing the completion of a multi-year modernization project. The $153 million modernization project, expected to be substantially completed this fall, will include a 33,000 square-foot terminal expansion with new waiting areas and seating, more dining and shopping options, and security checkpoint enhancements, among other upgrades.

The Club is also one of the first Delta Sky Club locations to safely reintroduce its signature hot food offerings after suspending those options at the height of the COVID-19 pandemic. The fresh and healthy fare will include breakfast favorites, regional specialties and an all-day selection of soups, salads, sandwiches, quick snacks and indulgent desserts. The Club’s award-winning beverage program will offer a rotating selection of seasonal, premium cocktails for guests over 21 to enjoy from the bar.

With the support and guidance of Delta’s Chief Health Officer, the continued mask requirement and increasing vaccination rates nationwide, hot food items in self-serve food stations will roll out to additional Clubs in stages, beginning with Delta’s hub locations and the newly opened Fort Lauderdale Club. A phased roll-out for the entire network will continue through the end of the year, in adherence to local and state regulations.

As Delta Sky Clubs begin to look more familiar to guests, they can rest assured knowing guest health and safety is at the forefront of every decision. Delta Sky Clubs continue to wipe down high-touch areas, offer hand sanitizer dispensers and require employees and guests to wear face masks at all times, in accordance with federal law. Clubs will also supply gloves as an optional layer of protection for guests at self-serve food stations.

With the opening of the Fort Lauderdale Club, all of Delta’s Clubs will be reopened by the end of June. After relaxing in Delta’s newest Club, South Florida travelers can catch one of Delta’s 32 average daily departures from Fort Lauderdale to 10 cities, including eight Delta stations that offer onward connections: Atlanta, Boston, Cincinnati, Detroit, New York-JFK, New York-LaGuardia, Minneapolis/St. Paul, Raleigh Durham, Salt Lake City and new daily service to Los Angeles. To explore destinations and deals, check out the Delta Discover Map.

Delta Air Lines and Kenya Airways boost connectivity between U.S. and Africa

Delta Air Lines and Kenya Airways PLC have expanded their codeshare agreement, increasing the choice of destinations offered by Delta in Africa and extending Kenya Airways’ reach in North America via the U.S. gateway of New York-JFK. The new agreement enhances the airlines’ already extensive codeshare network to offer seamless travel to a total of 39 cities across Africa, the U.S. and Canada.

The enhanced agreement enables Delta customers flying nonstop on the airline’s services from New York-JFK to Accra, Ghana, to connect with Delta-marketed codeshare flights to Monrovia, Liberia, and Freetown, Sierra Leone, operated by Kenya Airways. Delta-marketed codeshare flights will also be available on Kenya Airways’ services from Nairobi to Cape Town, South Africa; Harare, Zimbabwe; and Kigali, Rwanda.

From New York-JFK, Kenya Airways has placed its code on Delta’s services to Washington’s Ronald Regan National Airport, offering customers increased access to the U.S. capital, as well as to Indianapolis, Indiana.

Delta and Kenya Airways are both members of the SkyTeam alliance. Frequent Flyers can earn and redeem miles on both airlines, while Elite Plus travelers benefit from SkyPriority services.

Delta accelerates hiring as customers return to travel

Delta Air Lines is working quickly to increase staffing in Reservations and Customer Care, Airport Customer Service and Cargo, Flight Operations and Tech Operations in support of customers’ speedy return to travel.

Reservations and Customer Care has handled record-breaking customer volumes all year, reaching 96 percent of 2019 levels as more leisure travelers return to the skies and need assistance. With staffing that was diminished by 50 percent when Delta people took voluntary early retirement or separation packages that helped the airline survive pandemic-driven challenges in 2020, call wait times have caused customer frustration. The Res & Care team is working quickly to return to service excellence levels that customers expect.

Res & Care will have 1,300 Reservation specialists trained and ready to serve customers by fall. The division will also welcome back about 200 Delta alumni in short-term contractor roles by the end of July to deliver the Delta Difference, as only Delta people can. The team has also contracted with a trusted travel agency partner to assist with customer service messaging over the next several months. Res & Care continues to partner with teams across the company to quickly diagnose tech issues and find real-time solutions to optimize the customer experience.

Delta encourages customers to delay calling if their travel need is not urgent or if their departure date is more than a week away. Instead of calling, customers can also use delta.com and the Fly Delta app to change or cancel a flight, find baggage information, manage SkyMiles® and more. A recent update to the self-service option within the app now allows customers to select and change an existing trip within 24 hours of departure using Same-Day change and browse from an array of alternative flight options.

Airport Customer Service and Cargo hiring has been underway for several weeks with more than 200 hiring events resulting in 2,000 new hires on board and another 1,200 hires in the recruitment pipeline, who are expected to start with Delta very soon. Additionally, nearly 1,200 positions are being recruited to support Global Cleanliness in key locations, including Atlanta, Detroit and Salt Lake City. The division is also supplementing key customer service issues such as wheelchair staffing. They’re continuing to discuss staffing levels with our partners – TSA, FAA, ATC – to provide our customers with a positive  experience across the travel journey.

Also, effective July 1, ACS and Cargo will sunset the Ready Reserve program, transitioning 7,000 people to CSA benefit-eligible roles and creating more flexible staffing options with an employee group that can work 20-40 hours based on operational demand.

Flight Operations will begin hiring pilots beginning this month, starting with candidates who currently hold conditional job offers from before the COVID-19 pandemic and have already been through our screening and interview process. Delta plans to hire more than 1,000 pilots before next summer, supporting Delta’s efforts to grow our domestic and global network to meet customer demand.

Flight Operations also announced the reopening of the application for Propel Advance – Delta’s pilot career path program for employees who wish to pursue a career as a pilot.

In-Flight Services will begin recruiting and hiring in Fall 2021. Additionally, about 1,300 Flight Attendants are returning from LOAs/PLOCs this October. With these additions, we will see the lowest schedule values in nearly a decade. Additionally, the division plans to bring back more than 1,600 candidates who were previously in training or had a conditional job offer prior to the pandemic.

Tech Ops plans to hire as many as 1,000 new mechanics, technicians and other team members by the end of 2021 to support the growing operation – ensuring that Delta continues to lead the industry in on-time arrivals and zero-cancellation days. The roles are a combination of operational and support roles for the TechOps division, including merit, Technician and related positions within Avionics, Maintenance Operations and Engineering. The airline is also hiring for positions that support its MRO business and subsidiary businesses, Delta Flight Products and Delta Material Services – all in an effort to continue delivering the world-class products and experience customers have come to know and love from Delta.

Delta to hire 1,000+ pilots by next summer, opens more European routes

From CNBC:

“Delta Air Lines told staff on Monday that it expects to hire more than 1,000 pilots by next summer, the latest move by an airline to cater to a rebound in travel demand.

Delta in April said it would resume hiring midyear as bookings began to recover from the coronavirus pandemic slump, starting with about 75 pilots from June through August.”

Read the full article: Delta hiring 1,000 pilots by next summer as travel demand returns (cnbc.com)

In other news, Delta has announced flights to Amsterdam, Lisbon and Frankfurt are now open to U.S. travelers:

Beautiful Groenburgwal canal in Amsterdam with the Soutern church (Zuiderkerk) at sunset in summer |

  • The Netherlands, Germany and Portugal reopen to U.S. travelers
  • Delta operating more flights to Amsterdam than any other U.S. airline
  • Italy eliminates COVID-tested travel protocol; fully vaccinated travelers can enter without additional requirements
  • See full schedule for open Europe destinations

After more than a year of restrictions on international travel, Europe is reopening for U.S. leisure and other non-essential travelers – with the Netherlands, Germany and Portugal being the latest countries to welcome back those seeking new adventures or reconnecting with loved ones.

Beginning June 24, the Netherlands will open to all U.S. travelers without testing, vaccination, or quarantine requirements. Portugal announced its reopening on June 15, requiring travelers to present a negative 72-hour PCR/NAAT test or a negative 24-hour antigen test upon entry.

Italy has also eased its entry requirements alongside Germany – customers can provide either proof of vaccination, a negative antigen/PCR/molecular test result within 48 hours from arrival or proof of COVID-19 recovery. As such, Delta has ended its pioneering COVID-testing protocol for all Italy flights effective June 21, and upcoming flights will now follow the standard entry requirements.

Customers venturing across the pond can easily connect to Delta’s Amsterdam hub with over 50 weekly flights from nearly every U.S. hub by July 7: Atlanta, Boston, Detroit, Minneapolis/St. Paul, New York-JFK, Seattle and Salt Lake City – making Delta the largest U.S. airline serving the Netherlands. Delta’s longtime partnership with KLM has also helped the airline maintain AMS service since the beginning of the pandemic, keeping a vital gateway open for essential travelers connecting across Europe.

On Aug. 1, Delta returns to Lisbon with daily service from New York-JFK, more than a year since pausing flights due to COVID-19.

Delta will also continue operating nonstop daily service between Atlanta and Frankfurt. Customers can connect from almost 150 U.S. cities to Delta’s largest hub, providing multiple opportunities for a one-stop departure to Germany’s busiest airport.

Open Destinations in Europe

Here’s a snapshot of the European destinations that are currently open or that will open throughout the summer to vaccinated travelers and/or travelers with negative tests. See Delta’s Return to International Travel page for details specific to each destination

Destinations Schedule Details
Amsterdam, Netherlands

 

  • Twice-daily from ATL on Airbus A350-900 and A330-300, increasing to three times a day July 7
  • Daily from DTW on A350-900
  • Daily from JFK and SEA on A330-900
  • Five times a week from BOS and MSP on A330-300 (MSP increases to daily July 7)
  • Three times a week from SLC on A330-200, increasing to five July 7
Frankfurt, Germany

 

  • Daily from ATL on Airbus A330-300
Lisbon, Portugal

 

  • Resuming four times a week from JFK on Aug. 1 on Boeing 767-300ER
Paris, France
  • Three-times-weekly MSP service begins July 7 on A330-300
  • Twice-daily service from ATL on Airbus A350-900 and A330-300
  • Daily service from JFK on Airbus A330-300
  • Three-times-weekly service from DTW on Boeing 767-300ER
Nice, France
  • Three-times-weekly service from JFK begins July 8 on Boeing 767-400
Dubrovnik, Croatia
  • New four-times-weekly service from JFK begins July 2 on Boeing 767-300ER
Athens, Greece
  • New daily service from ATL begins July 2 on Airbus A330-300
  • Twice-daily service from JFK on Airbus A330-300
 

Reykjavik, Iceland

  • New service from BOS on Boeing 757-200
  • Service from JFK on Boeing 757-200, upgrading to 767-300ER from July 2
  • Daily service from MSP on Boeing 757-200
Milan, Italy
  • Daily service from JFK on A330-300
Rome, Italy
  • New service from BOS begins Aug. 5 on A330-300
  • Daily service from ATL on Airbus A330-300
  • Three-times-weekly service from JFK on Airbus A330, increasing to daily July 1
Venice, Italy
  • Three-times-weekly from JFK begins July 2 on Boeing 767-300ER
  • Five-times-weekly service from ATL begins Aug. 5 on Boeing 767
Barcelona, Spain
  • Four-times-weekly service from ATL begins Aug. 5 on Boeing 767-300ER
  • Three-times-weekly service from JFK on Boeing 767-300ER, increasing to daily Aug. 5
Madrid, Spain
  • Three-times weekly from ATL begins Aug. 5
  • Daily service from JFK on Boeing 767-300ER

Flights to Croatia, France, Germany, Greece, Iceland, the Netherlands, Portugal and Spain are operated in partnership with Air France, KLM and Virgin Atlantic. Our flights to Italy are operated in conjunction with Alitalia. This schedule, including routes and frequency, remains subject to change.

Delta Discover Map

As the European Union takes steps toward reopening borders, it is up to individual member countries to decide when and how to lift their restrictions. Customers are encouraged to review entry requirements, including whether a vaccination certificate or negative COVID-19 test is required, on the Delta Discover Map or check the official government website of their destination country.

Delta and Virgin Atlantic to launch built-in digital health credential; provides blueprint to reopen trans-Atlantic travel

Delta Air Lines has made this announcement:

  • Airlines will implement new technology on select routes between U.S. and U.K., with broader availability coming this summer
  • No third-party app downloads for an easy-to-use and guesswork-free experience
  • Technology built on trusted health standards and designed to adapt to changing landscape as more markets reopen

Delta customers traveling between the U.S. and U.K. this summer will be among the first to use Delta FlyReadySM, a new digital health credential solution that will help take the guesswork out of meeting health requirements during international travel. The tool will initially help manage testing requirements, but Delta will integrate vaccination credentials into Delta FlyReady later this summer – great news for customers looking to travel to Delta FlyReady-eligible destinations that require proof of vaccination for entry.

Delta began testing the new solution in late April on flights between Atlanta Hartsfield-Jackson International Airport and London’s Heathrow Airport. Delta FlyReady assists customers in scheduling a COVID-19 test that meets destination requirements, automatically verifies their test results and confirms the traveler meets the necessary testing requirements in place at their destination. In partnership with Virgin Atlantic Airways, customers traveling on either Delta- or Virgin Atlantic-operated flights will be able to use the tool beginning this summer.*

Virgin Atlantic plans to begin testing the solution, adapted as Virgin Atlantic FlyReadySM, on Virgin Atlantic-operated flights between London Heathrow and U.S. cities starting in June. Those eligible to use the tool during the test will be contacted before travel with more information on how to participate.

As of June 17, 2021, the U.S. remained on the U.K.’s Amber List as part of its phased plans to reopen international travel into the country this summer. Airlines continue to encourage both governments to enable U.K. residents and citizens to enter the U.S., and to move the U.S. to the U.K.’s Green List, fully reopening the trans-Atlantic corridor. As these discussions continue, Delta and Virgin Atlantic are putting technology into action that will serve as a blueprint to reopen international travel broadly.

AN EASY-TO-USE EXPERIENCE TO VERIFY ENTRY REQUIREMENTS

Delta FlyReady is a new technology solution built on trusted health standards to digitally verify testing documents** needed to travel on both Delta and Virgin Atlantic flights.

Here is an overview of how the experience works for eligible customers:

  • Book your flight and check your email. Because the solution is integrated directly into Delta’s systems, there is no need for customers to download an additional app – eligible customers can access Delta FlyReady through a link found in their pre-flight email or My Trips before travel.
  • Schedule your COVID-19 test up to three days before departure. In partnership with TrustAssure, Delta will serve up verified COVID-19 testing locations near you and offer the option to book a test in a couple of clicks.*** Once you have taken your test, you will receive an email from TrustAssure confirming your Delta FlyReady status or notifying you of additional actions needed.
  • Already have results from another test provider? No problem. If you chose to get tested through another provider, use the “upload test results” option to verify a digital copy or photo of your results. Upload before arriving at the airport, verify and enjoy the same time-saving benefits of your Delta FlyReady status.
  • Check-in as you normally would before travel. No need to stress – Delta has automatically linked your Delta FlyReady status to your itinerary, and you are ready to travel.****

Delta FlyReady offers benefits for Delta employees as well. Over time the solution will limit the amount of paperwork involved in verifying a customer’s Delta FlyReady status. Airport agents will be shown a digital indicator to prove the customer has met necessary requirements, lowering the risk of denied boarding.

All customer health data associated with Delta FlyReady is encrypted. Nothing is stored in Delta’s systems. Delta only receives a digital indicator showing that the customer has met the applicable legal requirements.