Delta posts loss for first quarter amid pandemic slowdown
) reported on Wednesday its first quarterly loss in eight years as the coronavirus crisis devastates air travel demand, but said its daily cash burn would slow through June as it braces for a recovery that could take two to three years.”We should be prepared for a choppy, sluggish recovery even after the virus is contained,” Chief Executive Ed Bastian said in an employee memo on Wednesday.
By the end of the quarter, passenger volumes had dropped by as much as 95 percent and Delta was burning $100 million per day. The airline swung to a $534 million net loss in the first quarter that ended March 31, or a $0.84 loss per share, from a $730 million net profit a year earlier.Delta, the first U.S. airline to post first-quarter results, is among those receiving a government bailout meant to cover six months of payroll on the condition that it not lay off employees until October and retain a certain number of flights.
Airlines could benefit in the coming quarter from a recent plunge in oil prices, though with so few planes flying the impact may not be substantial.
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