Delta warns of 80% revenue drop as US carriers fear doom

[turbinetree]

Source: Raw Story

Published 9 mins ago on March 21, 2020
By Agence France-Presse

Delta Air Lines on Friday warned the coronavirus pandemic will cut its second quarter earnings by 80 percent compared to 2019, and ratings agency S&P said other US carriers faced similar fates.

“We’re now projecting our June quarter revenues will be down by $10 billion compared to a year ago — an 80 percent reduction,” Delta’s chief executive Ed Bastian said in a note to employees.

The hotel and travel industries have borne the initial brunt of the impact of the drastic shutdowns caused by the global virus outbreak, but worse may be ahead, Bastian said, and “recovery will take an extended period once the virus is contained.”

Amid the spreading economic carnage, Bastian said there are now 13,000 employees who have taken voluntary unpaid leave, and “we could use more.” That is an increase from the 10,000 he reported Wednesday had gone on leave, foregoing salary but maintaining benefits such as health insurance.

https://www.rawstory.com/2020/03/delta-warns-of-80-revenue-drop-as-us-carriers-fear-doom/




Read more: https://www.rawstory.com/2020/03/delta-warns-of-80-revenue-drop-as-us-carriers-fear-doom/

[Laelth]

1. k&r for exposure. n/t

-Laelth

[mn9driver]

2. Delta just drew down a $2.6 billion secured line of credit. They are burning through $50 million/day

At this rate they will be history in 40 days. Along with every other US airline.

[paleotn]

3. Uncharted territory...

In addition to the folks at CDC working overtime, we need to come up with some financial and economic wizardry to get us out of this. Otherwise, the economic impact will be with us far longer than the medical impact and may be far more reaching. Just floating additional federal debt and handing out the cash ain't gonna cut it. There's only so much market for treasuries and I'm afraid we'll quickly hit a point where we can't give them away. The Fed running the printing presses 24/7 isn't going to cut it either. Oh, sure. Debase the currency. What a wonderful idea. We beat the virus, but now we're in a depression worse than the early 1930's.

Was thinking this morning....why is it that every time we jettison a Republican president in the last 20 years, it's in the midst of a monumental financial crises? When are Americans going to discover that Republicans are not only the party of racism and hate, but broad stupidity?

[The Mouth]

4. Not one cent to ANY company

that has done a stock buy back in the last few years.

[BigmanPigman]

13. Ditto!

[Bengus81]

5. Aw shucks....can you get some luggage to fly for FREE now?

Endless add ons and FEES out the wazoo and then expect someone to go to a destination for a WEEK and charge for a garment bag?!?!


Screw um..........

[captain jack]

6. Would love to see how that $2.6 billion secured line of credit is being spent. Not on 13k workers.

[Brainfodder]

7. Just convert them all over to party plane$ for the wealthy?

Might as well cater to the abu$ive a$$hole$ of the world and $iphon off what you can?

Just all one big 1st cla$$ $ection with hooker$ and blow, duly rewarding their greatne$$?

[Politicub]

8. Maybe better-managed airlines will rise from their ashes.

And instead of using 95 percent of their profits for inflating their stock through buybacks, they will accumulate enough cash on hand to make it through a business downturn.

[BamaRefugee]

9. I'm warning of 100% revenue drop for myself.

[NotASurfer]

10. They are at least trying to add revenue by flying cargo

As the novel coronavirus speeds around the world, airlines have responded to travel restrictions and plummeting demand by canceling flights, grounding fleets, and shuttering terminals.

But Monday afternoon, Delta said it’s putting an unspecified number of passenger jets back in the air, flying out of 13 American airports and to 70 destinations overseas. Delta’s not selling any tickets for those planes, however. Rather, they’ll be operated by Delta’s cargo arm, running charter flights to cater to anyone who needs to move a package or pallet.

...

Combine super low jet fuel prices, pilots who are being paid whether or not they fly, and historically high freight rates, and it’s easy to see Delta’s thinking.

https://www.wired.com/story/airlines-use-empty-passenger-jets-ease-cargo-crunch/

[BigDemVoter]

11. We'll end up bailing them out while they continue to throw us off flights with

no rights to protest, etc. I hate to see the economy tank, but we've been through this before with the airlines.

[Delmette2.0]

12. Why are we told to save for retirement, have 6 months income

in savings and probably a smaller emergency fund? Pull our selves by the boot straps and stop frivolous spending.

But the big corporations don't have to do the same?

[Upward]

14. Have You Ever Flown? Do You Ever Want to Fly In the Future?

I am not in the airline industry, but in hospitality-related transportation, so take this with a grain ... right?

People in the hospitality industry are getting killed right now. The company I work for, their stock went from about $90 to $13 in one week. Everyone is furloughed for two months.

No matter what you think of these corporations serving their boards and their stockholders, they serve you, too.

I heart my job. It's not getting me rich, but it's been paying the bills, the debts from previous crappy jobs, and allowing me to save maybe 5-6k year. People who are further up the chain are losing even more.

If my industry is going to get sidelined every 5 years or however many between gaps, between funky new communicable diseases, it's going to go away OR, travel - especially air travel - will once again become restricted to people who can afford to pay up what most of us take a whole month to earn. Otherwise, you will see the smart monkeys look for different industries.

[Bengus81]

15. Sure and how is doing stock buy backs help employee's?

It doesn't and it's been PROVEN over and over that Corporation after Corporation handed bales of CASH by the Gov don't use it for the good of their employee's but ONLY for the good of shareholders. Oh and of course a load of bonuses (many times MORE than their salary) for the fat cats at the top.

[TexasBushwhacker]

16. Should have put your excess profits in the bank

imstead of buying back stock.