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  • By The Financial District

Delta Posts $735-M 2nd Quarter Profit

Delta Air Lines recorded $735 million in sales in the second quarter of 2022, as full planes and increased fares boosted revenue close to pre-pandemic levels, according to David Koenig of the Associated Press (AP).


Photo Insert: As a condition of receiving $54 billion in federal pandemic help, US airlines were prohibited from laying off employees, but they were not prohibited from providing buyouts and early retirement bonuses, which tens of thousands of employees accepted.



However, the result fell short of Wall Street forecasts, and Delta's stock dropped more than 5% in noon trading.


Delta suffered in the third quarter as fuel prices rose and the cost of canceling over 4,000 flights in May and June increased. "We had a rough six weeks," stated CEO Ed Bastian. "None of us were up to our best," he remarked, referring to his own and other airlines.



Delta has hired hundreds of staff and reduced its timetable in order to run more smoothly, but these changes have come at a high cost. Delta anticipates paying $700 million in overtime and premium pay to keep enough employees on the job for the rest of the year.


Delta, according to Bastian, is now nearly completely staffed, with a workforce that is only 5% thinner than in 2019 while operating 15% fewer flights. Delta needs to go on a hiring binge — it has recruited 18,000 staff since the beginning of 2021 — to replace those who were urged to quit once the virus struck and travel collapsed.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

It now has a hurdle in training new staff — "there's a pretty big learning curve," Bastian said — which is exacerbated by employee outages caused by COVID-19.


Bastian said he had no remorse about offering workers incentives to leave the industry in 2020, when the industry was in shambles and there were no vaccines against COVID-19.


As a condition of receiving $54 billion in federal pandemic help, US airlines were prohibited from laying off employees, but they were not prohibited from providing buyouts and early retirement bonuses, which tens of thousands of employees accepted.


Business: Business men in suite and tie in a work meeting in the office located in the financial district.

The airline sector is presently experiencing labor shortages. Delta stated that a lack of staffing at European airports caused such a severe baggage breakdown that the airline made a special flight with only lost luggage on board to reconnect them with their owners in the United States.



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