Delta Air Lines posted another hefty quarterly loss, and expects a recovery to be at leastt two years away.
Despite aggressive cost-cutting, it reported a loss of $5.4 billion for the third quarter.
Delta’s revenue was only $3.06 billion for the quarter, marking a 76% year-over-year decline.
Last year it posted a profit of $1.5 billion.
It is the second consecutive quarter it posted losses exceeding $5 billion.
However, this quarter’s losses included $4 billion in one-off costs such as voluntary separation and early retirement pay-offs of about 18,000 employees.
Delta has managed to reduce daily cash burn to $18 million, CFO Paul Jacobson said.
A travel recovery could be ‘two years or more,’ Delta CEO Ed Bastion said.
"The virus has had a much broader impact over the course of the year than any of us were suspecting," Bastion said.
"While our September quarter results demonstrate the magnitude of the pandemic on our business, we are seeing a path of progressive improvement in our revenues, financial results and daily cash burn."
By deferring new aircraft orders and retiring older jets Delta says it will save roughly $5 billion through 2022.
Delta President Glen Hauenstein said there is ‘good booking momentum’ for the holiday season.
Written by Ray Montgomery, US Editor
