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Delta Air Lines Slips To Loss In Q3, Results Miss View - Quick Facts

Delta Air Lines, Inc. (DAL) on Tuesday reported a net loss for the third quarter on a 76 percent plunge in revenues that reflected weak demand for air travel due to the impact of the COVID-19 pandemic.

Adjusted loss per share for the quarter was wider than analysts' expectations, while revenues also missed their estimates. The company's stock is losing more than 3 percent in pre-market activity.

Delta's net loss for the third quarter was $5.38 billion or $8.47 per share, compared to net income of $1.50 billion or $2.31 per share in the year-ago period.

Adjusted loss for the quarter was $3.30 per share, compared to adjusted earnings of $2.33 per share a year ago. On average, analysts polled by Thomson Reuters expected the company to report loss of $3.00 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted pre-tax loss for the quarter was $2.6 billion and excludes $4.0 billion of items directly related to the impact of COVID-19 and the company's response, including fleet-related restructuring charges as well as charges for voluntary separation and early retirement programs for Delta employees. These were partially offset by the benefit of the CARES Act grant recognized in the quarter.

Operating revenue for the quarter fell 76 percent to $3.06 billion from $12.56 billion in the prior-year quarter. Adjusted revenue dropped 79 percent to $2.65 billion from $12.51 billion last year. Analysts expected revenue of $3.11 billion for the quarter.

Passenger revenues for the quarter declined 83 percent from last year, on 63 percent lower capacity as demand for air travel remained under significant pressure.

At the end of the September quarter, Delta had $21.6 billion in liquidity. During the September quarter, cash burn averaged $24 million per day, and $18 million per day for the month of September.

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