$652 million profit (Delta has returned to profitability after 5 quarters July 2021)
Jul 14, 2021, 6:08 am
#1
Original Poster
Join Date: Jun 2013
Programs: DL Diamond, UA Premier Gold
Posts: 2,929
$652 million profit (Delta has returned to profitability after 5 quarters July 2021)
Delta has returned to profitability after 5 quarters.
https://www.cnbc.com/2021/07/14/delt...s-q2-2021.html
https://www.cnbc.com/2021/07/14/delt...s-q2-2021.html
Jul 14, 2021, 6:20 am
#2
FlyerTalk Evangelist
Join Date: Jun 2015
Location: Back in Reds Country (DAY/CVG). Previously: SEA & SAT.
Programs: DL PM 1MM, AA PLAT, UA Silver, Marriott Bonvoy Titanium
Posts: 10,334
Let’s hope they use these profits to
1) Hire more call center agents
2) Profit share with the employees who have kept the airline running through COVID.
1) Hire more call center agents
2) Profit share with the employees who have kept the airline running through COVID.
Jul 14, 2021, 6:48 am
#3
Join Date: Jul 2004
Location: Seat 1A
Programs: DL; AA; UA; CO; LHLX; NZ; QR; EK; BA
Posts: 7,404
Net income was +$652m on a GAAP basis but a loss of $678m on an adjusted basis (stripping out federal aid and special items).
Pre-tax GAAP profit was $776m but a loss of $881m when adjusted for special items.
However they were profitable in the month of June on an adjusted pre-tax basis.
Pre-tax GAAP profit was $776m but a loss of $881m when adjusted for special items.
However they were profitable in the month of June on an adjusted pre-tax basis.
Jul 14, 2021, 9:52 am
#4
Join Date: Mar 2015
Location: Home
Posts: 469
Let’s hope they use these profits to
1) Hire more call center agents
2) Profit share with the employees who have kept the airline running through COVID.
3) Plan executive bonuses
4) Do share buybacks
5) Purchase more discounted planes from bankrupt JV partners
.
.
.
.
13) Introduce pre-covid meals in FC
1) Hire more call center agents
2) Profit share with the employees who have kept the airline running through COVID.
3) Plan executive bonuses
4) Do share buybacks
5) Purchase more discounted planes from bankrupt JV partners
.
.
.
.
13) Introduce pre-covid meals in FC
Jul 14, 2021, 10:10 am
#6
Join Date: Jul 2015
Location: MCO
Programs: DL PM, UA Silver, Marriott Titanium, Hertz Presidents Circle
Posts: 4,298
No kidding and I just booked with UA on my upcoming trip. On my upcoming flight, DL fares were nearly double that of AA and UA. Why should I pay double that of the competition to fly on DL only to get limited in-flight service, 3 hour hold times for customer service, and possibly be served a “cold boxed meal?”
Jul 14, 2021, 10:21 am
#7
Join Date: Mar 2015
Location: Home
Posts: 469
No kidding and I just booked with UA on my upcoming trip. On my upcoming flight, DL fares were nearly double that of AA and UA. Why should I pay double that of the competition to fly on DL only to get limited in-flight service, 3 hour hold times for customer service, and possibly be served a “cold boxed meal?”
One of my guilty pleasures is booking FC on AS with my DL Reserve card
. Just to make sure DL gets all details of my flying activity, and that has resulted in a deluge of targeted offers ($100 ecert, discount code/promotions etc.) not biting so far.
Jul 14, 2021, 12:54 pm
#8
Join Date: Jun 2005
Location: Huntsville, AL
Programs: DL DM 1.929MM, Hilton Lifetime Diamond, IHG Platinum, Avis CHM, Marriott Titanium (lifetime gold)
Posts: 7,857
Jul 14, 2021, 1:11 pm
#10
Join Date: Feb 2017
Programs: DL DM, UA Gold, Alaska MVP, Bonvoy (lol) Ambassador
Posts: 2,994
Jul 14, 2021, 2:16 pm
#11
Join Date: Mar 2017
Programs: Skymiles Gold
Posts: 641
Out of Atlanta to the cities I go to often, where DL is the only airline flying non-stop, the fares are actually cheaper now than pre-covid for basically the rest of the year, and have been for a month, as I've been looking and booking.
Jul 14, 2021, 2:17 pm
#12
Join Date: Mar 2017
Programs: Skymiles Gold
Posts: 641
Question, all of the various loans that DL had to draw on over the past year, I assume they have to pay all of that back. Does anyone know if the payback of the various loans is included in the profit amount, or will they need to use the profit to pay those things back?
Jul 14, 2021, 2:23 pm
#13
Join Date: Dec 2000
Location: SAN Diego (Hillcrest); formerly LEXington, KY; still like the nym
Programs: DL Platinum; Marriott Lifetime Platinum; married to Hilton Elite
Posts: 3,027
It is only a "profit" under GAAP and is required to be reported that way. Delta also provides its own non-GAAP report which declares a $678 million loss after considering the government payroll support payments (and including an income tax amount), And no, they are not allowed under the terms of payroll support payments to make dividend or bonus payments for another year. Might help if some folks actually read the accounting report, or understood it.
Jul 14, 2021, 2:48 pm
#14
Join Date: Feb 2017
Programs: DL DM, UA Gold, Alaska MVP, Bonvoy (lol) Ambassador
Posts: 2,994
Question, all of the various loans that DL had to draw on over the past year, I assume they have to pay all of that back. Does anyone know if the payback of the various loans is included in the profit amount, or will they need to use the profit to pay those things back?
Operating income excludes interest. Net income includes interest payments. So if net income is positive, it means that they are making money after paying interest on those loans.
But in the long run, they also have to pay back the principal. Principal payment does not actually impact profit - only interest payments do (which makes sense - otherwise borrowing money would mean profit is up and paying it back means profit goes down
). What it does impact is the balance sheet and assets. And it is roughly correct to say that - in the long run - the loans have to be paid off with operating profit (or, really, operating cashflow).
Jul 14, 2021, 6:27 pm
#15
Join Date: Mar 2008
Location: Fort Lauderdale, FL
Posts: 3,360
/major sarcasm