Today, October 13th, major US carrier Delta Air Lines reported the financial results of the quarter ended September 2020. Hit hard by the effects of COVID-19 travel restrictions, the airline’s cash burn averaged a whopping $24 million per day during this quarter – but was reduced by 25% below that average, to $18 million per day, during the month of September. Despite the huge losses, the airline continues to work its way back towards profitability and financial sustainability.
“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…The actions we are taking now to take care of our people, simplify our fleet, improve the customer experience, and strengthen our brand will allow Delta to accelerate into a post-COVID recovery.” -Ed Bastian, Chief executive officer, Delta Air Lines Nearly $6.9 billion in pre-tax losses.
According to the airline’s financial reporting, its September quarter 2020 performance resulted in a pre-tax loss of $6.9 billion, which breaks down to a loss per share of $8.47. Delta’s total revenue during this quarter amounted to $3.1 billion.
The results are, unsurprisingly, a significant drop from the same time last year – down 79% to be precise, as demand for air travel remains under substantial pressure. Delta goes on to say that passenger revenues declined 83% on 63% lower capacity.
Non-ticket revenue streams performed relatively better than passenger revenues, as total loyalty revenues declined 60% and cargo down by 25%.
While it may be two years or more until we see a normalized revenue environment, by restoring customer confidence in travel and building customer loyalty now, we are creating the foundation for sustainable future revenue growth. -Glen Hauenstein, President, Delta Air Lines
