over 3 years ago • 2 mins
Delta Air Lines – the world’s largest carrier – reported disappointing third-quarter results on Tuesday, with its investors bracing for yet more turbulence… ⛈
Delta had breezily forecast that quarterly revenue would land some 75% lower than the same time last year: the pandemic, having initially sapped would-be customers’ ability to travel, continued to reduce their appetite for non-essential adventure ✈️ But the airline fell slightly short of even this low-altitude prediction, revealing revenue declines of 76%. A greater-than-expected loss of $5.4 billion duly ensued. That’s a figure some analysts might be happy with, however, given Delta burned through “just” $18 million daily – compared to $27 million in the second quarter and $100 million a day back in March.
Delta’s stock fell around 3% on Tuesday – but so did shares of rival airlines at home and abroad. That might’ve been down to Delta’s reiteration of warnings that flight demand won’t recover for at least two years 😞 Any revival of the long-haul, business class, and international flights where Delta normally makes hay looks particularly unlikely, but short-haul flights are suffering too. British low-cost carrier EasyJet announced its first-ever annual loss last week – and while it’s raised enough fresh cash to maintain a holding pattern for now, the company reckons more UK airlines will soon crash-land unless the government extends further support.
The US industry may risk a similar fate now that April’s $25 billion bailout package is running on fumes. While the prospect of additional assistance has been floated to keep airline workers from losing their jobs, their fate looks linked to Americans’ at large 🇺🇸 Warring factions of the US government still can’t decide how much extra economic support to roll out overall, delaying help for even those industries they appear to agree need it.
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