Delta books first-quarter loss after burning $100 million in cash a day during coronavirus travel slump

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Air travel demand has plummeted during the coronavirus pandemic. “We’re operating right now at less than 5% of a normal passenger load,” Delta CEO Ed Bastian says.

Delta said it plans to halve its cash burn rate to $50 million a day by the end of the second quarter.Financial results of Delta and other carriers are expected to worsen in the second quarter.

The Atlanta-based carrier's revenues plunged 18% in the first three months of the year to $8.6 billion. CEO Ed Bastian said second-quarter revenue will likely fall 90% from the same period of 2019 and forecast a long recovery, telling employees that the airline will be smaller in the future. The carrier burned through $100 million a day at the end of March, a rate it expects to halve by the end of the second quarter.

 

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nickwaye Let them go bankrupt Assets will be sold at auction to a leaner meaner more efficient new owner who will be much less leveraged and not paid for by tax payers

There is a bit of karmic payback for the industry after years of removing capacity artificially to increase price + adding ever more seats. Now, 5%.

Look up flights , more expensive now

We could be following the Swedish model and avoiding all of this....

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