Categories: Aviation

Delta Loses $5.4 Billion in Third Quarter

Delta Air Lines was first up this morning among U.S. carriers to post its third-quarter earnings, and as expected it was not a pretty bottom line.

The coronavirus pandemic continues to play havoc with the industry as Delta announced a $5.4 billion loss for the quarter, according to CNBC, compared to a profit of $1.5 billion in the third quarter of 2019.

Revenue dropped 76 percent from $12.56 billion a year ago to $3.06 billion in the three months that ended Sept. 30, leading the carrier to say that things might not return to normal for “two years or more.”

Delta has now lost almost $12 billion in the last two quarters, although it was able to cut its cash burn from $27 million a day in the second quarter to $18 million a day last month.

Like other large airlines, Delta was hurt by two major factors. Business travel has dramatically decreased over the last seven months and, in the specific case of the third quarter, travel restrictions and a reluctance to fly impacted leisure travel over summer, the most lucrative air travel portion of the year.

But Delta CEO Ed Bastian remains optimistic.

“While our September quarter results demonstrate the magnitude of the pandemic on our business, we have been encouraged as more customers travel and we are seeing a path of progressive improvement in our revenues, financial results and daily cash burn,” he said in a statement.

This post was published by our news partner: TravelPulse.com | Article Source
TJS News

TravelPulse.com, part of the travAlliancemedia network of products, is the leading resource for the latest travel news, offers, and videos. Since 2002, TravelPulse.com has been delivering industry news, dynamic video content and important supplier and destination information that have allowed hundreds of thousands of travel agents to succeed. Now, with dedicated consumer content, TravelPulse is once again revolutionizing the way that travel content is consumed.

Recent Posts

American Heart Association CKM syndrome

Millions of Americans live with heart disease, kidney disease, and metabolic conditions like obesity and…

5 days ago

FAA Investigates Close Call Between Delta and American Aircraft at Boston Logan International Airport

The Federal Aviation Administration is investigating a close call between American Airlines and Delta Air…

6 days ago

Universal Studios Hollywood Moves Security Up Front: What Changes for CityWalk and Theme Park Guests

Guests are now going through security before they reach CityWalk and the theme park gates.…

1 week ago

Consumer Reports Says Uber and Lyft Fares Can Vary Widely. Here’s What Travelers Should Do Now

The Jet Set is watching a new Consumer Reports investigation that says Uber and Lyft…

1 week ago

Greek Islands: Which One Is Actually Right for You (and How to Get There)

Here's the truth nobody says out loud: the Greek Islands are not one destination. They're…

1 week ago

American Airlines to Deploy Anti-Terror Barricades Beginning June 18

American Airlines will begin using anti-terror barricades on June 18. Although the barriers had already…

1 week ago