Delta Air Lines (DAL) - Get Report said it expected second-quarter revenue would drop 80%, or $10 billion, as so many people have stopped traveling in the wake of the coronavirus pandemic, according to a regulatory filing Friday.
In a message to Delta employees, the Atlanta carrier’s chief executive, Ed Bastian, said that “despite all the self-help measures we are taking, we are currently burning roughly $50 million in cash each day.”
In the Securities and Exchange Commission filing dated Friday, Delta said it had entered a $2.6 billion secured credit facility, “enhancing the company’s liquidity as it manages through an unprecedented decline in air-travel demand due to the Covid-19 outbreak. The company is also drawing $3 billion under its existing revolving credit facilities.”
To conserve cash, Delta has suspended its stock buyback plan and dividends.
“Maintaining ample liquidity during this crisis is critical to the essential service that Delta provides in America’s transportation infrastructure as well as the jobs of more than 90,000 Delta people across the country,” Bastian said.
Some 13,000 Delta staffers have volunteered to take unpaid leave, according to the filing, but that the airline needs more of them to do so.
The major airlines are asking the U.S. government for $58 billion of assistance.
The carrier has already frozen hiring, slashed capital spending, eliminated discretionary spending and cut officers’ salaries.