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- Delta Air Lines says its revenue came in 76% lower in the fiscal third quarter.
- The U.S. air carrier minimised its average daily cash burn to £18.55 million in Q3.
- Delta Air Lines reports £4.17 billion of loss due to the Coronavirus pandemic.
Delta Air Lines (NYSE: DAL) said on Tuesday that it concluded the fiscal third quarter with £4.17 billion of loss attributed to the Coronavirus pandemic that brought the global air travel to a near halt this year. The company said that demand was starting to pick up but warned that recovery was going to be slow and it could take two years or even more before sales return to the pre-virus levels.
Shares of the company tanked 2% in premarket trading on Tuesday and lost another 1% on market open. Delta Air Lines now has a per-share price of £24.56 that translates to an about 50% recovery in the stock market since March. Delta had started the year 2020 at £45.70 per share. Learn more about how do people make money on the stock market.
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In the same quarter last year, Delta had reported £1.16 billion of profit. The U.S. airline has lost over £8.50 billion due to the COVID-19 crisis so far (second and third quarter combined). Delta Air Lines turned to its loyalty programme in September to raise £5.02 billion.
Delta minimises its daily cash burn to £18.55 million
In terms of revenue, Delta reported a 76% decline in Q3 to £2.37 billion versus £9.71 billion in the comparable quarter of last year. Experts had anticipated the company to print a slightly higher £2.40 billion of revenue in the third quarter.
For per-share loss in the recent quarter, analysts had forecast £2.32. In its report on Tuesday, Delta revealed a broader £2.55 per share of loss in Q3. The Atlanta-based air carrier minimised its average daily cash burn to £18.55 million in the third quarter versus a much higher £33.24 million in the prior quarter.
Delta Air Lines is committed to further reducing its average daily cash burn to a maximum of 9.28 million in the fiscal fourth quarter. The company expects to break even or possibly turn cash-flow positive in the first half of 2021.
CEO Ed Bastian’s comments on Tuesday
According to CEO Ed Bastian:
“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.”
At the time of writing, Delta Air Lines has a market cap of £15.66 billion.
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