Delta Air Lines’ financial performance has resulted in a profit in the three months leading up to June 30th 2023. This is good news especially given the fact that the airline made a loss in the first quarter of this year. However the result is consistent with the overall performance of Delta Air Lines. In 2022, Delta Air Lines’ financial performance resulted in profit for the final three consecutive quarters in 2022 and an overall profit at year-end. Although this is the case, the airline is clearly not always having an easy time with regards to its finances. However even when the company made a loss in the first quarter of this year, it does appear that it improved when compared to the same time in 2022. On the whole therefore, the Delta Air Lines’ financial performance is on an upward trajectory and the fact that this quarter was profit making is very good for the company.
As we know however, the situation has not been easy for airlines and the aviation industry in general. The pandemic took a toll on Delta Air Lines’ financial performance as well as that for other airlines because restrictions imposed by governments around the world meant that air travel was heavly restricted. Once restrictions were lifted the woes continued for many as the post pandemic surge in demand meant that airports faced heavy congestion due to staff shortages. This is because many staff were laid off during the pandemic when demand was less and therefore more time was needed to re-recruit. As a result airlines had to initially restrict the numbers of flights in order to reduce passenger numbers at airports and thereby ease the congestion. In North America, the home of Delta Air Lines, congestion was particularly high last year at the Independence Day weekend in early summer 2022. This led to mass delays and cancelations of flights in Canada and the US.
Delta Air Lines’ Financial Performance
Fortunately however, the situation has now improved for many airlines including Delta Air Lines. In terms of Delta Air Lines’ financial performance, in the three months up to 30 June 2023, the airline made a profit of 1.827 billion US dollars. This is approximately 2.5 times higher than the profit of 735 million US dollars made in the three months up to June 30th 2022. This shows that there has been a significant improvement in profit when compared to the same time period in the previous year.
In terms of revenue (total money received), Delta Air lines’ financial performance has also improved resulting in an operating revenue (total money received from services) of 15.578 billion US dollars for the three months up to June 30th 2023. This is 13% higher than the 13.824 billion US dollars operating revenue received in the three months up to June 30th 2022. This shows that Delta Air Lines is attracting more customers. In addition Delta Air Lines’ revenue has increased by 13% whereas profit has increased to a greater extent by approximately 2.5 times. The fact that this is the case indicates that cost control has improved significantly over the past year. This is consistent with the position achieved in the first quarter of this year (even though at that time the company made a loss) and shows that the company is dealing well with the cost pressures such as war in Ukraine and subsequent rise in fuel prices due to sanctions against the importing of oil from Russia.
The Company’s Response
With regards to Delta Air Lines’ financial performance response Ed Bastian, Delta Air Lines’ Chief Executive Officer, has praised staff for their incredible work in providing strong operational performance during this busy summer period. He feels that this has generated record profitability and revenue in this quarter. He has also said that he feels that they are the best professionals in the industry. In addition in recognition of their achievements he has allocated 667 million US dollars from the first half of the year towards next year’s profit sharing payment.
As one can see, Delta Air Lines’ financial performance has been strong in the three months up to June 30th 2023. This continues the strong performance in the previous year. Ed Bastian, the company’s Chief Executive Officer has praised staff for their hard work and, and as described, has also allocated funds towards a financial reward for them. We have to wait to see how this progresses.