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Delta Announces June Quarter Loss of US$3.9 Billion

Delta Air Lines HA has announced June quarter 2020 adjusted pre-tax losses of $3.9 billion, while reporting its financial results.

Delta has already provided more than US$2.2 billion in cash refunds in 2020.

The airline says that at the end of the June quarter, it had US$15.7 billion in liquidity.

At present Delta has more than 700 of its aircraft parked. 

“A $3.9 billion adjusted pre-tax loss for the June quarter on a more than $11 billion decline in revenue over last year, illustrates the truly staggering impact of the COVID-19 pandemic on our business. In the face of this challenge, our people have acted quickly and decisively to protect our customers and our company, reducing our average daily cash burn by more than 70 percent since late March to $27 million in the month of June,” said Ed Bastian, Delta’s chief executive officer.

“Given the combined effects of the pandemic and associated financial impact on the global economy, we continue to believe that it will be more than two years before we see a sustainable recovery. In this difficult environment, the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – guide every decision we make, differentiating Delta with our customers and positioning us to succeed when demand returns.”

Delta’s total operating expense decreased $4.1 billion over the prior year. Demand for air travel declined significantly in the June quarter as a result of COVID-19, with enplaned passengers down 93 percent year over year.

As a result, Delta’s adjusted operating revenue of $1.2 billion for the June quarter was down 91 percent versus the June 2019 quarter. Passenger revenues declined 94 percent on 85 percent lower capacity.

Non-ticket revenue declined 65 percent, as Cargo, MRO and Loyalty revenues declined at a lower rate than ticket revenue. 

Delta Delta will transform to a smaller, more efficient airline over the next several years by accelerating fleet simplification with the retirement of entire MD-88, MD-90, 777 and 737-700 fleets and portions of its 767-300ER and A320 fleets this year.

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