After releasing numbers this week, we’ve now learned about the giant losses Delta Air Lines has seen since the COVID-19 pandemic began to affect the USA back in March. In fact, the $5.4 billion reported loss is actually only from the quarter extending from July 1 to September 30, so the losses on a whole are even bigger.
Delta is likely a harbinger for bad times in the airline industry, the company being the first of the major US airlines to report earnings for the quarter. The company announced it will be taking new protocols to cut back on spending and save money in these extraordinary times, retiring 400 aircrafts and slowing the making of any new ones.
In a statement, CEO Ed Bastian was optimistic, focusing on positives. He said, “We have been encouraged as more customers travel and we are seeing a path of progressive improvement in our revenues, financial results and daily cash burn.”
Last year at this time, things were as different as they could be. This quarter includes numbers for the busy travel season, which is why last year the company made $1.5 billion in the quarter. The drop highlights just how big of an impact the pandemic is having on the travel industry.
Stay tuned for updates on other airlines during this reporting season.