Delta Air Lines (Delta) has released its financial results for the June quarter of 2021: Delta reported an adjusted pre-tax loss of US$881 million excluding US$1.5 billion of benefit related to the first and second payroll support program extensions (PSP2 and PSP3, respectively) and mark-to-market adjustments on its investments Adjusted operating revenue was US$6.3 billion, which excluded refinery sales and declined 49% on 39% lower sellable capacity versus the June quarter of 2019. Total operating expense, which included US$1.5 billion of benefit related to PSP2 and PSP3, decreased US$4.1 billion relative to the June quarter of 2019. Adjusted for the benefit related to the PSP programs and third-party refinery sales, total operating expense decreased US$3.3 billion or 32% in the June quarter 2021 versus the comparable 2019 period.
Adjusted operating revenue of US$6.3 billion for the June quarter improved 76% from March quarter 2021. Compared to the same period in 2019, adjusted operating revenue declined 49%, an improvement from the company’s guidance update in June of down 50-52%. Passenger revenue declined 53% in the June quarter of 2021 compared to the June quarter of 2019 on 32% lower scheduled capacity and 39% lower sellable capacity, which included the blocking of the middle seats on aircraft through the month of April 2021. Total adjusted unit revenue was 45.4% higher than the March quarter of 2021 as adjusted operating revenue grew 76% on a 21% increase in scheduled capacity over the same period. Compared to the March quarter of 2021, system yields improved 4.8% and load factors improved 24 points.
The company generated US$1.9 billion of operating cash flow, US$1.5 billion of free cash flow, and US$195 million of free cash flow, adjusted in the June quarter. At the end of the June quarter, the company had US$17.8 billion in liquidity, including cash and cash equivalents, short-term investments, and undrawn revolving credit facilities. The company had total debt and finance lease obligations of US$29.1 billion with adjusted net debt of US$18.3 billion.
