Delta Airlines reported a $6.9 billion Q3 pre-tax loss or loss per share of $ 8.47 on the company’s total revenue of $3.1 billion, according to press release. Adjusted pre-tax loss was $ 2.6 billion or adjusted loss per share of $3.30. Quarter losses caused by reduced travel due to impacts of COVID-19 and related control measures.

  • Delta cuts Q3 system capacity from -60% to -20% year over year basis.
  • Delta Airlines cash burn $24 million per day.
  • September cash burn $18 per day 
  • Delta’s Revenue per Available Seat Miles (RASM) is -43% 
  • Company’s load factor is 41% versus 88% year over year basis
  • Adjusted average price per fuel gallon is $1.25 versus $1.96 year over year basis
  • Operating cost per available seat miles (cents) is 33.40 versus 13.85 year over year basis
  • Delta Airlines is restoring flying to meet customer’s needs-Glen Hauenstein, Delta President
  • Company is restructuring Airbus and CRJ aircraft order books to match aircraft deliveries with network and financial demands. Restructuring to reduce aircraft purchase commitments by more than $2 billion in 2020 and more than $5 billion through 2022.
  • Company accelerating fleet simplification strategy and has plans to retire almost 400 aircraft by 2025, including over 200 in 2020
  • About 18,000 employees offered voluntary retirement separation resulting in a $3.2 billion restructuring charge with cash payments totaling $813 million in the quarter. 
  • Delta Airlines anticipates additional $150-250 million cash payments in the December quarter, $600 million in 2021, and the remaining payments in 2022 and beyond.

Airline stocks declining. DAL: NYSE is down 2.24%, UAL:NASDAQ is down 2.25%, AAL: NASDAQ is down 3.87%