Delta Air Lines Loss Increases To USD 11 Billion During COVID-19 Pandemic

Amid the coronavirus pandemic, the loss of Delta Air Lines has widened to USD 11 billion so far. The carrier said that though travelers have started to return, the impact of the COVID-19 pandemic likely to continue on the aviation industry for years. Delta Chief Executive Ed Bastian said that the impact of the disease is much more than anyone had suspected. Bastian warned that it could take the company years to recover the losses. The statement comes after Delta registered a third-quarter net loss of USD 5.4 billion. The company had a profit of around USD 1.5 billion during the same period a year earlier. The revenue of the airline has dropped 76 percent from USD 12.56 billion to USD 3.06 billion in a year.

Delta was hopeful of stopping the continuous loss by the end of the year. Big airlines like this have been facing a tough time especially because they were dependent mostly on business travel and international flights. These are the two areas that have been hit the most because of the pandemic. Now the company anticipates that things are not going to be normal until spring. Delta spent around USD 18 million in cash every day but expects to reduce that to USD 10 million by the end of the year. Major airlines were optimistic about the resurgence at the beginning of the summer. But it seems that they were being highly optimistic.

After travel restriction and lockdown to curb the spread of coronavirus, air travel witnessed an unprecedented drop. This forced passenger airlines to take some tough decisions that can show the path of recovery in the long term. Delta has decided to limit the number of passengers on the flight in order to set travelers’ minds at ease. The airline said that it will continue to block the middle seat even in the month of January next year. Airports are witnessing an increase in passenger volumes, albeit slowly. Airports in the United States recently witnessed the highest level of travelers since mid-March.