Delta Air Lines Inc. (DAL) is a global airline based in the U.S. The company provides air transportation services for passengers and cargo. It also operates an oil refinery business through subsidiaries. The oil refinery business serves the primary airline business by providing jet fuel. Additionally, Delta provides ancillary air services and a customer loyalty program. Delta’s competitors include American Airlines Inc. (AAL), Southwest Airlines Co. (LUV), and United Airlines Holdings Inc. (UAL).
Like most airline companies, Delta has experienced a significant adverse impact to its business as a result of the COVID-19 pandemic. In 2020, the company served approximately 70 million customers, down nearly two-thirds from 2019. Travel demand has begun to recover over the past year amid vaccine rollouts and an easing of travel restrictions. Delta said that, while its business and international travel demand is still recovering, its domestic consumer travel demand has returned to 2019 levels.
Key Takeaways
- Delta Air Lines is a global airline providing air transportation for passengers and cargo.
- Delta’s passenger revenue is growing fast as travel demand rebounds after being decimated by the pandemic.
- Delta cancelled its code-sharing agreement with Russia’s national carrier Aeroflot amid Russia’s invasion of Ukraine.
Delta Air Lines’ Financials
Delta announced in mid-January financial results for Q4 of its 2021 fiscal year (FY), which ended Dec. 31, 2021. Because of the dramatic impact the pandemic had on the company’s business in FY 2020, Delta presented its fourth quarter results for FY 2021 in comparison with fourth quarter results from FY 2019, before the pandemic. Normally, companies compare their results with the year-ago quarter. Both the year-ago and two-year-ago comparison are provided below.
Delta reported a net loss of $408 million in Q4 FY 2021 compared to net income of $1.1 billion in Q4 FY 2019. In Q4 FY 2020, the company reported a…