Elijah Novelge | Reuters
Delta Air Lines posted another multibillion-dollar net loss on Tuesday following the coronovirus epidemic that is typically the peak travel period of the year. The carrier warned that it could take several years to recover.
Hitting third-quarter reporting for the troubled airline sector, Delta said its net loss in the third quarter was $ 5.4 billion, compared to $ 1.5 billion in the year-ago period. It said revenue fell 76% from $ 12.56 billion a year earlier, to $ 3.06 billion by the end of September in the three months, slightly ending under analysts’ forecasts of $ 3.1 billion.
Delta’s president warned that revenue may not be normal for “two years or more”.
Delta shares were down 3.1% in primate trading.
Large airlines such as Delta have been particularly challenged in the epidemic because they previously relied heavily on business travel and the spread of international networks, two regions that suffered from the epidemic.
Delta has spent dozens of aircraft retiring in recent months and reducing its footprint to cut costs. About 18,000 Delta employees, about a fifth of its pre-epidemic workforce, which are pre-purchased and early retirement packages, indicated a restructuring fee of $ 3.1 billion.
Airlines received $ 25 billion in federal payroll support Congress passed this spring but negotiations between the Trump administration and Congress for additional airline assistance were repeatedly derailed.
Here’s what Delta expected of Wall Street, based on average estimates compiled by Refinitive:
- Adjusted EPS: Loss of $ 3.30 vs. Expected Loss of $ 3
- Revenue: $ 3.06 billion vs. $ 3.11 billion, expected
More airlines are competing for price-sensitive leisure travelers within the United States, but demand has struggled despite recovering from multi-decade lows in April. The Transportation Security Administration screened approximately 64 million people at US airports in the third quarter, up 150% from the three months ended June 30, but still TSA had 221 million people screened in the year-earlier period.
To pacify passengers who are nervous about flying during the epidemic, Delta and its competitors have scrambled to implement cleaning procedures and other policies. Delta, for example, leaves middle seats on flights.
Delta was able to cut its daily cash burn by more than 44% to an average of $ 24 million during the second quarter from $ 43 million. Delta lost as much as $ 18 million a day in September, an improvement but still far from its goal of breaking through the end of the year.
Delta CEO Ed Bastian stated, “While our September quarter results demonstrate the impact of the epidemic on our business, we have been encouraged to visit more customers and we will increase our revenue, financial results and daily cash Looking at the path of progressive reform. ” Release in a gross.
Ever since the epidemic began, Delta has lost more than $ 11 billion.
On an adjusted basis, Delta incurred a loss of $ 3.30 per share, a $ 3 per share loss provided by Refinitives more than analysts were expecting.
Delta has already retired dozens of aircraft to cut costs. In the final quarter, it added to the list, deciding to retire its Boeing 767-300 ERS and 717-200 by 2025 and the CRJ-200S by 2023.