Delta faces $1.2B loss, but recovery seen on the horizon

Delta Air Lines lost $1.2 billion in the first quarter, more than expected, but executives said Thursday that the airline could be profitable by late summer if the budding recovery in air travel continues.

CEO Ed Bastian said Thursday that ticket sales have been stronger in the last two weeks than at any time since the pandemic hit the U.S. last year. So far most of the people boarding planes are vacationers booking trips to mountains, beaches and resorts.

The increase in passengers, combined with lower costs for labor and fuel, helped Delta generate $4 million in cash per day in March after burning cash for the past year.

“It's clear that our business is turning the corner and we're moving into an active recovery phase,” Bastian said in an interview. “We see the business continuing to improve as consumer confidence grows.”

However, Delta forecast that second-quarter revenue will be down 50% to 55% compared with the same quarter in 2019, which analysts said fell short of expectations.

Several airlines have reported that bookings began to pick up in February and gained speed in March. Delta's bookings doubled from January to March, although 10% to 15% are using credits from previously canceled flights. U.S. leisure sales have recovered to 85% of pre-pandemic levels, Delta said.

The only threat Bastian sees to the recovery is a resurgence of the virus. Delta's view — assumes that the U.S. will reach so-called herd immunity and slow the spread of COVID-19 by late spring or early summer.

DETROIT — Toyota is recalling nearly 280,000 Venza SUVs in the U.S. because a wiring problem can stop the side air bags from inflating in a crash.The recall covers Venzas from the 2009 through 2015 model years. Documents posted Thursday by the U.S. National Highway Traffic Safety Administration say wires to the air bag sensor in the driver's side door can become damaged with regular use. That could stop the side and curtain air bags from deploying when needed.Toyota said in documents that it received 31 field reports and 56 warranty claims in the U.S. due to the problem.