Delta has ‘good shot’ at 3Q profit

Delta Air Lines has a “good shot” at turning a profit in the 3Q after Covid-19 vaccinations start containing the disease, and opening up travel and more bookings, CEO Ed Bastian said. DAL remains firm on its target to break even on a cash-flow basis in the 2Q. In the 1Q, daily cash burn will amount up to $15M after totaling $12M over the last quarter of 2020, Delta said in Jan. 12’s reported earnings. DAL is the first major U.S. airline to report results that may fuel industry hopes that recovery may begin late this year. Except for short-lived gains during the holidays, U.S. passenger totals in the 4Q withered around a third of 2019 levels. (Source: Bloomberg News 01/14/21) Gulf Coast Note: Delta flies out of Columbus GTR, Gulfport and Jackson, Miss.; Baton Rouge and New Orleans, La.; Birmingham, Huntsville and Mobile, Ala.; and Panama City and Pensacola, in the Florida Panhandle. Delta Sees ‘Good Shot’ at Midyear Profit as Demand Rebounds (msn.com) Side Bar: The U.S. Treasury began distributing $15B in payroll assistance to airlines, approved by Congress under similar conditions to last spring. Delta Air Lines expects $2.9B ($830M in an unsecured loan). The airline received a $1.4B on Jan. 15. Southwest Airlines expects $1.73B (received $863.7M on Friday.) Major airlines must also issue warrants to the government as part of the assistance. Congress approved a separate $25 billion in payroll assistance in March. (Source: Reuters 01/15/21)