Delta (DAL) posts 1Q20 loss of $607 million as coronavirus hurts travel demand

Planes belonging to Delta Air Lines sit idle at Kansas City International Airport on April 03, 2020 in Kansas City, Missouri.

Jamie Squire | Getty Images

Delta Air Lines‘¬†on Wednesday posted a pretax loss of $607 million for the first quarter and issued a bleak forecast for this spring as the coronavirus continues to sap travel demand.

The Atlanta-based carrier’s revenues plunged 18% in the quarter to $8.6 billion. CEO Ed Bastian said second-quarter revenue will likely fall 90% on the year.

Airlines are among the industries hit hardest by coronavirus and harsh measures to stop it from spreading, like stay-at-home orders. Carriers, including Delta, were granted a portion of $25 billion in government grants and loans dedicated to paying employees through Sept. 30.

On an adjusted basis, Delta reported a per-share loss of 51 cents, compared with analysts’ estimates for a 70 cent per-share loss in the first quarter. Delta shares were up 3% in premarket trading.

This is breaking news. Check back for updates.

Source link

Leave a Reply

Your email address will not be published.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