in ,

Delta Air Lines is suffering heavy losses, but wants to be optimistic

(New York) The US airline Delta Air Lines posted a heavy loss of more than $ 5.3 billion in the third quarter, but was still filling its treasury to deal with the punishable COVID-19 crisis globally air traffic.

Posted Oct 13, 2020 at 9:08 am

Updated at 10:09 am

Agence France-Presse

The net loss is slightly lower than the previous quarter (-5.7 billion dollars). But over the same period last year, she made a net profit of $ 1.5 billion.

The stock fell on Wall Street when the stock market opened, losing 2.60% at 9:44 am.

Revenue of $ 3 billion is only a quarter of that of the third quarter of 2019.

"The improvement is slow, but consumers are clearly more confident in travel," CEO Ed Bastian told CNBC.

But a return to normal should take at least two years, the group's No. 2, Glen Hauenstein, warned in a press release.

And to face the consequences of this unprecedented crisis, Delta was able to strengthen its cash flow and had 21.6 billion in cash at the end of September, compared to 15.7 billion at the end of June.

The company also managed to cut its daily expenses a bit, burning an average of $ 24 million a day in the quarter, compared to $ 27 million a day in the previous quarter. To do this, it gradually removes from its fleet dozens of aircraft that have been grounded for months, saving the expensive parking and maintenance costs associated with these devices. In the third quarter, 10 Boeing 737-700 & # 39; s were withdrawn.

In addition, approximately 18,000 Delta employees left the group as part of a voluntary departure plan, which reduced personnel costs by 32% compared to the third quarter of 2019.

From July to September, Delta also received $ 701 million in aid from the US government, the company said.

Three weeks before the presidential election, US airlines are still waiting to see whether the Trump administration and the elected Democrats in Congress will succeed in passing a new economic aid plan that will help the airline industry create tens of thousands of jobs. threatens to destroy.

Written by Rahis

Leave a Reply

Your email address will not be published. Required fields are marked *

Transat's action leaps forward

BlackRock was boosted by improving markets in Q3