Delta Air Lines laments ‘worst year in company history’ amid huge 2020 loss

Delta Air Lines laments ‘worst year in company history’ amid huge 2020 loss

Delta
Air
Lines
reported
its
first
annual
loss
in
more
than
a
decade,
with
CEO
Ed
Bastian
calling
2020
“the
worst
year
in
company
history.”

But
shares
were
up
nearly
5
percent
Thursday
morning
after
Bastian
said
he
expects
2021
to
be
“the
year
of
recovery”,
with
consumers
getting
more
comfortable
taking
to
the
skies.

“We
don’t
anticipate
that
by
the
summer
travel
will
be
back
anywhere
close
to
where
it
previously
was,
but
it
will
be
a
meaningful
improvement,
sufficient
to
be
able
to
drive
profitability
for
us
in
the
back
half
of
the
year,”
Bastian
said
in
an
interview
with
Reuters.

Delta
reported
a
$12.4
billion
loss
for
2020

losing
an
average
of
$12
million
every
day
of
the
last
quarter.
The
company
expects
to
continue
to
burn
through
$10
million
to
$15
million
each
day
of
the
current
quarter.

It
recorded
a
$4.8
billion
profit
a
year
earlier.

In
the
first
quarter,
the
Atlanta-based
airline
expects
revenue
to
fall
between
60
and
65
percent
from
a
year
ago
and
its
scheduled
flight
capacity
to
shrink
by
35
percent.

Delta,
which
has
said
it
will
continue
blocking
out
middle
seats
through
at
least
March
30
in
an
effort
to
keep
passengers
distanced,
said
it
expects
the
actual
capacity
it
sells
to
fall
by
around
55
percent.

Delta
also
reported
operating
expenses
that
were
47
percent
lower
than
a
year
earlier,
with
lower
fuel,
maintenance
and
salary
costs.

Delta
has
avoided
furloughs
but
said
nearly
18,000
employees,
or
20
percent
of
its
workforce,
decided
to
leave
the
company
in
2020.

It
does
not
intend
to
furlough
any
employees
once
the
second
round
of
government
payroll
support
for
airlines
expires
in
March.

Shares
of
Delta
were
up
4.9
percent
Thursday
morning,
trading
at
$42.39.


With
Post
wires.

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