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Delta registers 40% higher revenues in March

Delta has been showing encouraging signs of recovery, a year after the pandemic began. The month of March is showing a strong boost in airline reservations, with a steady improvement in net cash sales compared to last year and top-tier revenues about 40% higher than in February. As consumer confidence advances, the airline will settle debts and accelerate voluntary contributions to its pension plans, including a USD 1 MM pension payment during the June quarter. This will reduce annual interest costs by around USD 110 M, and pension expenses by around USD 90 M. The company also plans to start paying cash for the aircraft it will receive in the second quarter. The average daily cash burn in this first quarter is expected to be USD 12 M to USD 14 M, close to the average that was initially expected. The company will end the period with cash burn, in March, close to the breakeven point. According to CEO Ed Bastian, Delta is on track to achieve a neutral cash burn in the spring of the Northern Hemisphere, with a sustained recovery in the second half of 2021 and a return to profitability in the September quarter. “For the month of March, we expect our top-tier revenues to be around 40% higher than we saw in February, which is a major improvement. He always expects a significant increase from February to March, so it is good to see something of the traditional seasonality beginning to appear. Historically, the variation in seasonality has been in an average range of 30%, so getting a 40% increase from February to March is good”, says Bastian. In addition, in early March, digital purchases were 70% restored to 2019 levels, representing almost 15 points more than in December. This index is quite different from any other point in the air in the pandemic, with more reservations made in advance starting to be made now. The advance window for most flight bookings was between six and 14 days during the period. Requests that exceed 60 days are almost stable in relation to the 2019 levels, just a few points below. “Our blocking of intermediate seats remains in effect and this is going to be a very powerful tool. If we managed to reach the breakeven point in March with more than 30% of our available seats not being sold, think about how it will be as demand continues to return and as we release such seats in the future. This will be an incredibly strong lever for us, with minimal cost to open these seats”, says the company’s president, Glen Hauenstein. – https://www.panrotas.com.br/aviacao/empresas/2021/03/delta-registra-receitas-40-mais-altas-em-marco_180606.html