With taxpayers' help, Delta posts $652 million profit in 2Q

Delta Air Lines reported its first quarterly profit since the pandemic devastated the airline industry more than a year ago, as hordes of vacation travelers and money from U.S. taxpayers offset weak corporate and international travel.

Delta said Wednesday that it earned $652 million in the second quarter. However, Delta's report shows that airlines still face turbulence as they try to rebound from their worst year ever.

Without $1.5 billion in federal pandemic relief and other one-time events, the Atlanta airline would have posted an adjusted loss of $678 million.

Even though crowds at the nation's airports are approaching 2019 levels, Delta's operating revenue is still only half of pre-pandemic levels.

And the company expects costs to rise as it rebuilds its operation, including hiring and training employees to handle the growing number of passengers.

“We still have a long ways to go,” CEO Ed Bastian said in an interview, “but the business is in a much, much better place than it was 90 days ago. We posted a solid profit in the month of June, and it augers well for where we're going this summer."

Bastian predicted that the airline — which lost more than $12 billion last year — will be profitable in both the third and fourth quarters, with third-quarter revenue down a more manageable 30% to 35% compared with 2019.

Shares rose 2% before the opening bell Wednesday. Delta is the first U.S. carrier to report June-quarter numbers.

Delta was the most profitable U.S. airline going into the pandemic, and it is likely to emerge from virus outbreak at or near the front of the pack. Other carriers are looking healthier, too.

Southwest Airlines posted a small profit earlier this year thanks to federal relief that helped airlines cover payroll costs. American Airlines might do the...