Delta Air Lines, Inc. (NYSE:DAL) stock rose 0.12% (As on Oct 14, 11:50:40 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 21. Delta’s load factor was 80% for the third quarter, higher than in any other quarter since the start of the pandemic but still below pre-pandemic levels. Total passenger revenue was 63 percent recovered in the September quarter 2021 compared to September quarter 2019 on system capacity that was 71 percent restored compared to 2019 levels. Compared to the June quarter 2021, system yields improved 4 percent and system load factors improved 11 points to 80 percent. As a result, total unit revenue, adjusted improved 17 percent sequentially. At the end of the September quarter, the company had $15.8 billion in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities.
Furthermore, at the end of the September quarter 2021, the company had total debt and finance lease obligations of $27.8 billion with adjusted net debt of $19.3 billion. The company’s total debt had a weighted average interest rate of 4.2 percent at September quarter-end. In addition to maturities and normal amortization of nearly $184 million, the company completed a $1 billion debt tender offer, acquired aircraft with cash rather than financing those acquisitions and executed $276 million of open market debt repurchases in the September quarter 2021.
DAL in the third quarter of FY 21 has reported the adjusted earnings per share of 30 cents, beating the analysts’ estimates for the adjusted earnings per share of 25 cents. The company had reported the adjusted revenue of $9.2 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of $8.4 billion. Total operating expenses, adjusted of $7.8 billion in the September quarter 2021 increased 12 percent sequentially, mainly driven by non-fuel costs from the continued restoration of the airline. Compared to September quarter 2019, total operating expenses, adjusted were down $2.6 billion or 25 percent. Fuel expense, adjusted increased 5 percent compared to the June quarter 2021 as lower fuel prices partially offset an 11 percent increase in capacity during the September quarter 2021. Adjusted fuel price of $1.94 per gallon was down 8 percent compared to the June quarter 2021 driven primarily by a refinery contribution versus a loss in the June quarter 2021.