Delta Air Lines has just become the first major airline to report its third quarter results, and as you'd expect, they aren't pretty... Delta has reported: A GAAP pre-tax loss of $6.9 billion (or $8.47 per share) on a total of $3.1 billion in revenue An adjusted pre-tax loss of $2.6 billion (or $3.30 per…
Continue reading: Delta Q3 Results: $2.6B Loss On $2.6B Of Revenue
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These results contain one time items but 2 things that struck out at me. DL continued to burn through $18 million in cash a day in September. I remember in the early 2000s right before the UA bankruptcy how the airline was lamenting that it was losing a $1 million a day (not actual cash burn). That was quaint compared to today.
Second, is the sheer number of a/c the airline plans on retiring over the next few years. To me DL has read the writing on the wall and realizes that some business travel isn't coming back anytime soon and they can't make a future on replacing all of that capacity with deep discounted leisure fares.
Really curious to see how this compares with the airlines who aren't reliant on the middle-seat-blocked marketing strategy
Maybe stock buy-backs and a LATAM acquisition weren't the best long term moves
Ed Bastian is one of the best CEO out there. I trust he will do what’s best for employees and the shareholders. Delta FTW
According to the NYT article today, DL has scaled back its $5 Billion in aircraft purchases today probably pending the outcome of the EU proposed tariffs on aircraft buys in retaliation to those imposed for Airbus subsidies.
Too late to join before the obligatory comments fawning over Delta had already begun.
Brian & Jkjkjk were too fast for me!
Reaper,
So is Ed bastian a bad CEO?
Most employees recommended him on glassdoor.
@ Jkjkjk, point missed, which was that no matter what the content of a OMAAT post on Delta it will be followed by an obligatory stream of generic complimentary comments.
Thank you for not disappointing me.
Only reason they’re not losing more money is they cut all non union salaries by 25% even with cares act funding paying for 100% of them.
Pretty shameful of delta to take government money paying 100% of salary then cut salaries 25%. Legal, but shameful.