Delta Air Lines, the Atlanta, Georgia-headquartered one of the leading airlines in the United States, had reported a staggering $5.38 billion in losses over the third quarter of the year, as a pandemic-scarred summer season had been worse-than-anticipated for the airlines and led to a 76 per cent plunge in revenues while a barrage of potential customers had been forced to hunker down at home amid travel restriction all over the globe.
In point of fact, Delta Air Lines, the first major American aviation mogul to release its Q3, 2020 earnings’ result, said at its quarterly earnings’ report on Tuesday that passenger revenues had witnessed a smaller-than-anticipated downhill slide compared to a pandemic-hurt second quarter of the year, while Delta Chief Executive Ed Bastian forecasted further improvements over the rest of the year adding “It’s slow, but it’s steady — week by week, they (passengers) are coming back.
Delta Air Lines reports $5.38 billion in losses, 76% plunge in revenues
In tandem, latest downbeat third-quarterly earnings’ report of Delta Airlines came against the backdrop of a steep plunge of more than 65% in traffics this month on a year-on-year basis, though traffics had been better than a decline of 68% in September and a drop of 71% in August.
Though, the Q3 losses came over the heels of a roughly $5.7 billion plunge over the second quarter of the year when the pandemic outbreak had led air travels to a near standstill. Apart from that, Delta’s latest moves to slash costs which involved a mass-scale furloughs and forced job cuts, had aided the company’s cause to see through the pandemic outbreak, while the Atlanta-based American multinational aviation giant had also raised a stark upsum of $9 billion in debts through leveraging its frequent-flyer program.
On tops of that, while the NYSE-listed Delta Air Lines stocks were slumped as much as 2.67 per cent to $31.77 a share followed by the reveal of its Q3 earnings’ report, Delta shares’ prices were largely backed by an upbeat current-quarter forecast from the US aviation giant.
Besides, Delta, which had roughly 91,000 employees as of December 31, 2019, kept more than half of its active staffs on unpaid leaves, eventually leading to a slowdown in cash-burn rate to $18.4 million per day in September compared to a reading of $26.1 million a day in August.