Delta Stalls in Second Quarter as Pandemic Ravages Air Travel
The coronavirus pandemic has ravaged the airline industry, and Delta Air Lines (DAL) - Get Delta Air Lines, Inc. Report is certainly no exception.
The Atlanta-based carrier suffered one of its worst quarters on record, posting a wider-than-expected second-quarter loss amid the coronavirus pandemic and shutdown of most non-essential travel.
Delta posted an adjusted loss of $3.86 billion, or $4.43 a share, vs. income of just under $2 billion, or $2.35 a share, in the year-ago quarter. Analysts polled by FactSet had been expecting a loss of $4.22 a share.
Revenue rang in at $1.18 billion, down 91% from a year ago and also below estimates $1.43 billion. Delta had $15.7 billion in liquidity as of the end of June.
The airline said passenger revenue was down an unprecedented 94% during the quarter on 85% lower capacity. That translated into a -21% revenue-per-available-seat mile figure, the carrier said.
CEO Ed Bastian also said that the rebound from April’s outright plunge in domestic flying had stalled, and that Delta will halve the number of extra flights it adds in August to 500 from 1,000 in July.
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