Delta Air Lines has reported a GAAP pre-tax loss of USD 7 billion in the second quarter of 2020, the company said.
The airline blamed COVID-19 and the decimated demand for travel as the primary factors for the dramatic losses.
Delta´s loss reflects a loss per share of USD 9.01 on a total revenue of USD 1.5 billion.
Under adjusted numbers, the pre-tax loss came out to only USD 3.9 billion. However, those numbers exclude USD 3.2 billion Delt spent on items directly related to the impact of COVID-19 and the company´s response.
The airlines´ actual sales were USD 1.2 billion, excluding refinery sales. Emplaned passengers decreased by 93%, compared to the June quarter 2020, putting sales down by 91% compared to the same time in 2019. Total airline capacity was down 81% year-over-year.
While sales were down, the reduced capacity and operations also allowed Delta to cut their quarterly operating expenses by USD 5.5 billion. To cut costs further, the airline will decrease its fleet size and accelerate the retirement of several older aircraft. By the end of the year, the carrier wants to ground a number of older aircraft, including the entire fleet of the McDonnell-Douglas MD-88 and MD-90, along with the Boeing 737-700 and 777 airframes. The airline will also reduce the number of Boeing 767-300ER and Airbus A320 aircraft in operation.