Delta Air Lines reports second quarter profit; plans to add extra aircraft

Delta Air Lines has recorded a second-quarter net profit of USD$652 million, as the relatively quick uptick in summer travel demand continues to defy industry experts’ predictions. While this result is still significantly less than what the carrier posted for Q2 of 2019, which was around USD$1.4 billion dollars, it is still a 76% increase in comparison to its first-quarter result of USD$369 million.

This quarterly profit also signals a remarkable shift from just a year ago, where airlines were losing the same amount of money due to operational expenses with many carriers seeking state aid or additional funding. Now, many US-based carriers are struggling to keep up with the surge in air travel demand due to aggressive cost-cutting measures, with some airlines having to cancel numerous flights for the summer season due to a shortage of both aircraft and crew personnel. 

Delta Air Lines stated that the domestic air travel resurgence accounted for almost 90 per cent of the airline’s entire revenue for the second quarter. The Chief Executive of Delta, Ed Bastian added “Domestic leisure travel is fully recovered to 2019 levels and there are encouraging signs of improvement in business and international travel.”

In terms of international travel restrictions and the business traveller, Delta is optimistic that over time things will improve with travel between Europe and the United States set to open up over the summer. For the US, barring no major change to the epidemiological situation between now and September, the federal government is expected to amend the mask mandate for airports and onboard aircraft, where it will now become an optional requirement if you are fully vaccinated. 

Adds aircraft

As Delta Air Lines reactivates more and more aircraft, the US carrier plans to add additional used aircraft from other airlines in order to improve operational flexibility and keep up with the short term demand for air travel. On Tuesday, Delta Air Lines stated that it plans to add 29 used Boeing 737-900ERs to its fleet in addition to leasing seven used Airbus A350-900s.

In a statement, the CEO of Delta, Ed Bastian said “These aircraft are an investment in Delta’s future.” The CEO added, “As we look past the pandemic, Delta’s disciplined, innovative approach to fleet renewal positions us for growth as travel demand returns while enhancing the customer experience and supporting our sustainability commitments.”

According to Delta Air Lines, the airline plans to lease the seven A350s from Irish aircraft lessor, AerCap while the purchase of 27 Boeing 737-900ERs will come from funds managed by Castlelake, L.P., while the remaining two 737-900ERs will be financed from funds also managed by aircraft lessor, Castlelake.

Source: https://aeronewsx.com/delta-air-lines-reports-second-quarter-profit-plans-to-add-extra-aircraft/?utm_source=rss&utm_medium=rss&utm_campaign=delta-air-lines-reports-second-quarter-profit-plans-to-add-extra-aircraft