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Jun 30, 2020
Delta Q2 2020 Earnings Report
Delta reported a significant loss due to the COVID-19 pandemic, but took decisive actions to preserve liquidity and reduce costs.
Key Takeaways
Delta Air Lines reported a $3.9 billion adjusted pre-tax loss for the June quarter due to a significant decline in revenue caused by the COVID-19 pandemic. The company reduced its average daily cash burn by more than 70% since late March and ended the quarter with $15.7 billion in liquidity.
Adjusted pre-tax loss of $3.9 billion for the June quarter.
Adjusted revenue declined by 91% compared to the previous year.
Ended the quarter with $15.7 billion in liquidity.
Average daily cash burn reduced to $27 million in June.
Forward Guidance
Delta anticipates a volatile revenue period and is focused on managing costs and positioning the company for an eventual recovery.
Positive Outlook
- Committed to achieving breakeven cash burn by the end of the year.
- Successfully bolstered liquidity to $15.7 billion at the end of June.
- Aggressively managing costs to navigate the volatile revenue period.
- Positioning Delta for eventual recovery.
- Expect to achieve a similar 50 percent year-over-year reduction in the September quarter despite a sequential increase in capacity
Challenges Ahead
- Expects it will be more than two years before we see a sustainable recovery.
- Pandemic and associated financial impact on the global economy.
- Volatile revenue period.
- Decline in air travel demand.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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