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Delta Air Lines Posts Hefty Loss In Q2

Delta Air Lines (DAL) reported a second quarter adjusted loss per share of $4.43 compared to profit of $2.35, prior year. On average, 15 analysts polled by Thomson Reuters expected the company to report a loss per share of $4.12, for the quarter. Analysts' estimates typically exclude special items. June quarter adjusted pre-tax loss was $3.9 billion, which excludes $3.2 billion of items directly related to the impact of COVID-19 and the company's response.

Second quarter adjusted operating revenue was $1.2 billion, down 91 percent from a year ago. Analysts expected revenue of $1.4 billion for the quarter. Passenger revenues declined 94 percent on 85 percent lower capacity. The company noted that demand for air travel declined significantly in the June quarter as a result of COVID-19, with enplaned passengers down 93 percent year over year.

Delta ended the June quarter with $15.7 billion in liquidity. At the end of the June quarter, the company had total debt and finance lease obligations of $24.6 billion with adjusted net debt of $13.9 billion. The company said it is aggressively managing costs through lower capacity, reduced fuel expense and cost initiatives including reduced work schedules and voluntary employee leaves of absence, parking aircraft, consolidating facilities and eliminating nearly all discretionary spend.

Ed Bastian, Delta's CEO, said: "Given the combined effects of the pandemic and associated financial impact on the global economy, we continue to believe that it will be more than two years before we see a sustainable recovery."

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