Delta reports first profit since 2019

Atlanta-based Delta Air Lines reported a second-quarter profit of $652 million to snap a five-quarter streak of losses, thanks to federal coronavirus aid that offset some of its costs.

The airline expects to be profitable in the second half without government aid.

Delta posted revenue of $7.13 billion for the three months ended June 30, down 43 percent from the $12.54 billion it generated in the second quarter of 2019 but more than the $6.22 billion Wall Street analysts expected.

For the third quarter, Delta said it expects revenue will be down 30 to 35 percent over 2019 when it brought in $12.56 billion.

The airline's leisure and business travel bookings rose sharply after more than a year of pandemic lockdowns.

The airline said domestic leisure travel has completely recovered and that business travel demand was also recovering. Average daily net cash sales, covering tickets purchased minus refunds, doubled over the first quarter and were 20 percent higher than its initial forecast.

Delta shares were down $1.07 versus an expected loss of $1.38 a share.

Delta, which reported a record loss of $12.4 billion last year, is the first of the US airlines to report second-quarter results.

American, United Airlines, and Southwest Airlines are set to report next week.