Flyertalk has reported Delta Air Lines has a goal to get its daily burn rate to USD 0 by the end of 2020, the news source said.
Despite the outbreak of the novel Coronavirus, Delta Air Lines is preparing to add 1,000 flights per day in July. The goal was set by airline chief executive during the annual shareholder meeting call on June 18, 2020.
During the call, the airline announced it stopped projects not tied to immediate needs, closed Sky Club locations and delayed non-essential maintenance for aircraft. Despite that, the COVID-19 pandemic forced Delta into a USD 607 million loss in the first quarter of 2020, burning USD 100 million per day.
With internal cost cutting measures, Bastian told shareholders by reducing total operating expenses by over 55%, its burn rate has decreased by two-thirds. With sales starting to increase, the carrier is setting its sights on a USD 0 daily burn rate by 2021.
The airline is still taking aggressive moves to shore up current needs. In addition to the USD 3.8 billion in funds already received from the CARES Act, the airline will get an additional USD 1.6 billion by the end of July 2020. In addition, over 40,000 employees accepted a voluntary unpaid leave with the carrier, ranging from as little as 30 days, to as long as one year.
Delta announced it would be the first US carrier to re-enter the Chinese marketplace. The carrier will restart service to Shanghai from Seattle on June 25, 2020, via Seoul Incheon International Airport (ICN). The flights will run twice per week.