By Rajesh Kumar Singh

CHICAGO, (Reuters) – Delta Air Lines Inc (NYSE 🙂 reported on Thursday higher quarterly earnings due to strong holiday travel demand. However, the company warned that it would lose the current quarter through March because of the Omicron coronavirus variant.

According to Refinitiv data, the adjusted profit of the Atlanta-based carrier was 22 cents per share. This beat analysts’ average estimate at 14 cents per shares. It marks the second consecutive profitable quarter.

Delta indicated that Omicron would likely slow down the recovery of travel demand by 60-days, however it believes the recovery will resume in the middle of February.

“Despite expectations for a loss in the March quarter, we remain positioned to generate a healthy profit in the June, September and December quarters, resulting in a meaningful profit in 2022,” Dan Janki, Delta’s chief financial officer, said in a statement.

Ed Bastian, chief executive of the company said that they were “confident” in strong spring and summer travel seasons with substantial pent-up consumer and business demand.

Omicron has been responsible for a significant increase in COVID-19 case numbers, which is causing havoc within the aviation industry. Mass cancellations of flights have been caused by an increase in sick calls and a string of winter storms.

In fact, nearly a third of United Airlines employees at Newark Liberty International Airport were sick in one day.

Flight-tracking company FlightAware reports that U.S. airlines cancelled more than 31300 flights since Christmas Eve. That’s about 7%.

More than 2000 flights were cancelled by Delta. But, the airline claimed its operation had stabilized and cancellations have dropped to less 20 flights each day over the last week.

In the current quarter, operational disruptions will increase its cost pressures.

It estimates that revenue from the current quarter will recover to between 72% and 76% of its 2019 level. The company expects that it will restore between 83% and 85% of its pre-pandemic capacities in the current quarter.