After wave of cancellations, Delta sees recovery in 2022

1/13/2022 7:23:00 PM

CEO Ed Bastian said 8,000 employees have contracted COVID-19 over the last four weeks. Sick workers and winter storms have led to more than 2,200 cancelled flights since Dec. 24.

Delta Air Lines, Ed Bastian

CEO Ed Bastian said 8,000 employees have contracted COVID-19 over the last four weeks. Sick workers and winter storms have led to more than 2,200 cancelled flights since Dec. 24.

Delta Air Lines lost $408 million in the final quarter of 2021, dragged down by a COVID-19 surge that rocked the airline in December, and the carrier predicted Thursday that it will suffer one more quarterly loss before travel perks up in spring and summer. CEO Ed Bastian said 8,000 employees have contracted COVID-19 over the last four weeks.

CEO of Delta Air LinesDelta Air Lines lost $408 million in the final quarter of 2021, dragged down by a COVID-19 surge that rocked the airline in December, and the carrier predicted Thursday that it will suffer one more quarterly loss before travel perks up in spring and summer.

CEO Ed Bastian said 8,000 employees have contracted COVID-19 over the last four weeks. Sick workers and winter storms have led to more than 2,200 cancelled flights since Dec. 24.Cancellations have dropped sharply in the past few days, but the spate of spiked flights cost the airline $75 million and the latest outbreak, caused by the omicron variant of the virus, is expected to push the industry's recovery back by two months.

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Ed Bastian CEO of Delta Air Lines Delta Air Lines lost $408 million in the final quarter of 2021, dragged down by a COVID-19 surge that rocked the airline in December, and the carrier predicted Thursday that it will suffer one more quarterly loss before travel perks up in spring and summer.The U.The airline canceled more than 2,000 flights since Christmas Eve due to worker shortages and bad winter weather, CEO Ed Bastian said.thousands of canceled flights since the holidays.

CEO Ed Bastian said 8,000 employees have contracted COVID-19 over the last four weeks. Sick workers and winter storms have led to more than 2,200 cancelled flights since Dec. is now averaging nearly 600,000 new cases of COVID infections per day, meaning millions of people are getting infected with the virus. 24. “Omicron is expected to temporarily delay the demand recovery 60 days, but as we look past the peak, we are confident in a strong spring and summer travel season with significant pent-up demand for consumer and business travel,” he added. Cancellations have dropped sharply in the past few days, but the spate of spiked flights cost the airline $75 million and the latest outbreak, caused by the omicron variant of the virus, is expected to push the industry's recovery back by two months. So far, the omicron variant appears to be milder than previous variants, and there are fewer hospitalizations and deaths from it. “I don't think we're going to see a pickup in bookings or travel during January and probably the first part of February,” Bastian said in an interview. We need confidence in travel returning once the virus recedes.

“It's always the weakest part of the year, and it's going to be that much weaker because of omicron.S. Morgan/Getty Images In total, US airlines have canceled more than 31,300 flights since Dec. We need confidence in travel returning once the virus recedes.” Delta expects omicron infections to peak over the next few days and then decline rapidly as it has in South Africa and — more slowly — in the United Kingdom. Vivek Murthy said. Omicron has halted a long, slow rise in travel and thrown it into reverse. Delta cited higher costs from fuel and Omicron-related disruptions in its fourth quarter results. So far in January, the number of people flying in the U. Dr. FILE - A United Airlines plane behind a row of Delta Air Lines planes at Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, on Dec.

S. is down 20% from same month in 2019 — worse than the 16% declines in November and December. Lee is a professor at the City University of New York Graduate School of Public Health and Health Policy. Despite the setback, Delta expects to achieve profitability for the full year, according to CFO Dan Janki. Earlier this week, United Airlines CEO Scott Kirby sent a letter to employees saying that 3,000 employees had tested positive for COVID-19. On a single day at Newark, nearly a third of United's staff called out sick and the airline has cut back on scheduled flights systemwide. "Based on the data, it looks like the peak of this current Omicron wave will probably occur sometime in mid-January," Dr. Both airlines have about 74,000 workers. McCoy/Getty Images “Despite expectations for a loss in the March quarter, we remain positioned to generate a healthy profit in the June, September and December quarters, resulting in a meaningful profit in 2022,” Janki said.S.

Delta expects to lose money in January and February and for the first quarter as a whole. By then, millions more Americans could potentially be infected with COVID, but it's what happens in the months after those infections that will need to be looked at closely, including what Omicron might mean in terms of new long-haul COVID cases. Revenue this quarter will likely be 72% to 74% of pre-pandemic levels, Delta said, about the same as the fourth quarter. Costs other than fuel will jump about 15% from 2019, and jet fuel is getting pricier too. Lee said. Quarterly revenue was $9. Story continues However, the Atlanta company expects to return to profitability in March — when spring break could help fill planes, especially if coronavirus infections are falling. Several thousand hires are likely this year as Delta bounces back from the pandemic, Bastian said." Dr. Delta expects to lose money in January and February and for the first quarter as a whole.

The company set aside $108 million for special profit-sharing payments of $1,250 for each current employee. In the first quarter, Delta projected its total revenue will be 72% to 76% of what it was in the same quarter prior to the pandemic. The thank-you payment to employees comes as a new skirmish breaks out between largely non-union Delta and the nation's largest union of flight attendants. The World Health Organization defines long-COVID as having symptoms more than months after initial infection. The union accuses Delta of pressuring employees to return to work too soon after contracting the virus. Delta lobbied the U." And it's something that, for omicron cases, might not become clearer until the spring. Allen J.S. The company set aside $108 million for special profit-sharing payments of $1,250 for each current employee.

Centers for Disease Control and Prevention last month to reduce the recommended quarantine period from 10 days to 5 days for vaccinated people who contract the virus, with Bastian and other Delta officials saying that the 10-day standard may significantly impact our workforce and operations.com.” The CDC made the change, with its director, Rochelle Walensky, explaining on NPR that “we started to see challenges with ... airline flights and other areas.

” Delta's fourth-quarter loss compared with a profit of $1.1 billion in the same quarter before the pandemic. Excluding losses on some investments and profit-sharing, Delta earned $170 million, or 22 cents per share. That easily topped per-share projections on Wall Street of 14 cents, according to a FactSet survey. Revenue was $9.

47 billion, down 17% from $11.44 billion in the fourth quarter of 2019, but well above the $9.02 billion predicted by industry analysts. Shares of Delta Air Lines Inc. jumped almost 5% at the opening bell Thursday.

All other major U.S. airlines rose strongly as did most of the travel industry with booking sites, hotels and cruise lines moving higher. ___ David Koenig can be reached at www.twitter.

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