Delta Air Lines Inc. DAL,
Shares fell nearly 1% in premarket trading on Tuesday after the airline reported second-quarter losses that were more extensive than expected. Delta’s net loss was $ 5.72 billion, or $ 9.01 per share, after net income of $ 1.44 billion, or $ 2.21 per share, last year. Adjusted losses were $ 4.43 per share. The FactSet consensus was for a loss of $ 4.16. Revenue totaled $ 1.47 billion, down from $ 12.54 billion last year, but before the FactSet consensus of $ 1.39 billion. Passenger revenue for the quarter fell 94% to $ 678 million, and cargo revenue decreased 42% to $ 108 million. “Given the combined effects of the pandemic and the 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,” Delta Chief Executive Ed Bastian said in a statement, making Emphasis on “Amazing impact of the COVID-19 pandemic on our business”. Delta ended the quarter with $ 15.7 billion in liquidity, and reduced its daily cash consumption in June by 70% compared to the end of March, to an average of $ 27 million. And the company has obtained $ 5.4 billion in grant funds and unsecured loans through the CARES Act, which will be paid in installments until July 2020. Maturities of $ 1.3 billion in loans on revolving lines of credit have been extended to 2022 from 2021. Delta has taken more Sanitation steps in the face of the coronavirus pandemic have a load factor limited to 60% and block the middle seats. The company has provided more than $ 2.2 billion in cash rebates in 2020. Delta is positioning itself to be a smaller airline for years to come, retiring the MD-88 and other aircraft, and downsizing through retirement. advance and other programs. The company is also accelerating airport construction projects at New York’s LaGuardia Airport, in Los Angeles and other cities. At the end of the quarter, the company had total debt and finance lease obligations of $ 24.6 billion. Delta reversed a $ 1.1 billion write-off on its investment in LATAM Airlines and a $ 770 million write-off on its investment in AeroMexico after those companies’ losses and bankruptcy documents. The company took an amortization of $ 200 million on its investment in Virgin Atlantic, a charge of $ 200 million. Delta shares fell 54.1% in the year to date, while the Dow Jones Industrial Average fell 8.6% in the period.
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