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Delta reports $5.4B loss as revenue dropped by 76 percent in third quarter

Delta reports $5.4B loss as revenue dropped by 76 percent in third quarter
© Photo by Bruce Bennett/Getty Images

Delta Air Lines reported a net loss of $5.4 billion in the third quarter of 2020 due to the lack of air travel brought on by the coronavirus pandemic, the airline announced on Tuesday.

The third-quarter revenue was $3.06 billion, which was down 76 percent from a year ago. Revenue in the third quarter of 2019 was $12.56 billion, CNBC reported

Delta lost over $11 billion in the second and third quarters combined. In the September quarter, passenger revenues declined 83 percent on 63 percent lower capacity.

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Delta CEO Ed Bastian said in a statement on Tuesday he is encouraged by an increase in air travel that revenues will improve.

“While our September quarter results demonstrate the magnitude of the pandemic on our business, 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,” he said. “The actions we are taking now to take care of our people, simplify our fleet, improve the customer experience, and strengthen our brand will allow Delta to accelerate into a post-COVID recovery.”

Delta announced in September it will delay the effective date for a potential 220 pilot furloughs to Nov. 1. It will not furlough any flight attendants and front-line workers in 2020 due to the many employees who opted for early retirement.

The airline industry has lobbied for a $25 billion injection from Congress to extend the Payroll Support Program. The program allocated $25 billion in aid as part of the $2.2 trillion CARES Act passed in March.

President TrumpDonald John TrumpBiden holds massive cash advantage over Trump ahead of Election Day Tax records show Trump maintains a Chinese bank account: NYT Trump plays video of Biden, Harris talking about fracking at Pennsylvania rally MORE indicated last week, after halting coronavirus relief talks until after the election, that he wants to help the airlines, but negotiations are stalled between Speaker Nancy PelosiNancy PelosiOn The Money: McConnell says he would give Trump-backed coronavirus deal a Senate vote | Pelosi, Mnuchin see progress, but no breakthrough | Trump, House lawyers return to court in fight over financial records Progress, but no breakthrough, on coronavirus relief McConnell says he would give Trump-backed coronavirus deal a vote in Senate MORE (D-Calif.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money: McConnell says he would give Trump-backed coronavirus deal a Senate vote | Pelosi, Mnuchin see progress, but no breakthrough | Trump, House lawyers return to court in fight over financial records Progress, but no breakthrough, on coronavirus relief McConnell says he would give Trump-backed coronavirus deal a vote in Senate MORE.