Delta reports record third-quarter profit as COVID - 19 infections surge

DAL reported third quarter results on Wednesday, beating earnings estimates with travelers returning to the skies en masse even as new COVID - 19 infections soared.

Here are the published main results of the Q 3 report compared to consensus estimates compiled by Bloomberg :

Delta profit surge during Q3 from the comparable year-ago, when it posted a staggering pre-tax loss of nearly $7 billion — marked an important recovery milestone, with mass vaccinations helping flyers navigate around the country more comfortable.

Two years ago Delta reported a $2 billion profit on revenue of $12.6 billion in the third quarter — which at the time was a record for Delta.

Four months later, the pandemic decimated the airline industry. Delta lost $881 million in the second quarter of this year, but a surge in domestic and leisure travel propelled the airline back to profitability during the last quarter.

I just think about the joy of reconnecting, and that's what we do best. The world comes together, we connect and we're the conduit through which that joy occurred, Bastian said.

Delta s capacity is at 71% and passenger revenue reached 63% of what it had been in 2019. Bastian said revenue recovery could hit 75% by 2013 as Americans travel for the holidays.

However, he cautions that the rapid increase in jet fuel prices will pressure Delta's ability to remain profitable in the fourth quarter. If you look over the course of the year, fuel prices are up 60% to date. So it's significantly escalated over the last year.

Delta said Bastian may increase ticket prices to cover the increased cost of fuel.

Consumers are interested in traveling and consumers possess a meaningful amount of wealth, he pointed out. I think they can pay the higher costs. Pricing is down in general this year so there's some room for us to cover it with higher fuel costs. The Biden administration will use the new USA travel regulations to allow new or existing foreigners entry into the United States in any other country's country, as long as they can prove they have been vaccinated against COVID - 19. Those bookings went up overnight 10 x from where they had been, Bastian said.

Still, Deltas transatlantic revenue is operating at 35% of what it had been in 2019; Bastian insists the Europeans are ready to come to the USA.

I gisely think of all the 1000 s and 1000 s of notes I've received from families that haven't been able to see grandchildren and loved ones and people on their, unfortunately, dyingbeds. And it's just crisis situations, we all become numb to some level of what COVID has done to us, Bastian lamented.

The airline is also seeing increased demand among business travelers. The current week, this past week, we just saw the highest level of domestic business activity and volume that we have seen in 18 months, that recovery rate approaches 50%, Bastian said, predicting the trend will continue into 2022 as businesses continue to open back up.

Delta said it is prepared for the increased number of travelers and has hired 8000 employees since the start of the year. So with the volume rising this year, we need to get people in position, Bastian added, adding that the airline hasn't had any problems hiring.

He expects the airline s recovery to continue in 2022 while targeting 2023 as a really good year for us to target, to not just being back but being better than what we were in 2019? Adam Shapiro is co-anchor of Yahoo Finance Live on 3 pm to 5 pm.