Delta to halve cash burn as it turns focus to choppy coronavirus recovery

[turbinetree]

Source: Reuters

BUSINESS NEWS APRIL 22, 2020 / 7:05 AM / UPDATED 25 MINUTES AGO

(Reuters) - Delta Air Lines Inc (DAL.N) has taken steps to halve its cash burn to $50 million per day through June after posting its first quarterly loss in eight years, and is bracing for a two to three year recovery from the coronavirus pandemic.”We should be prepared for a choppy, sluggish recovery even after the virus is contained,” Chief Executive Ed Bastian said in an employee memo on Wednesday.

A second wave of the coronavirus is expected to hit the United States next winter and could strike much harder than the first because it would likely arrive at the start of influenza season, the director of the Centers for Disease Control and Prevention warned on Tuesday.

Delta shares opened 3.6% higher but slipped into negative territory by late morning.

In a matter of months, U.S. airlines like Delta have gone from expansion to survival, searching for ways to raise and save as much cash as possible as flight cancellations started outnumbering new bookings around mid-March when Delta said demand dropped to near-zero.

Read more: https://www.reuters.com/article/us-delta-air-results/delta-to-halve-cash-burn-as-it-turns-focus-to-choppy-coronavirus-recovery-idUSKCN2241J7?il=0

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So the market is going up because of the second congressional tranche...................

[Sgent]

1. Wow...

Between April and June, Delta is reducing its flight schedule by about 85%, including an 80% cut for domestic flights and 90% for international flights, which experts expect will be the slowest to recover. More than 37,000 employees have volunteered for unpaid leaves ranging from one month to one year in duration.

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This is heartbreaking.

[turbinetree]

3. And the Dow Jones is going up.................what is wrong with this picture...........

this one of the leading transportation industrial indicators on the big board...............

[Sgent]

7. Honestly this is much

better than I expected -- and much better than other airlines.

That said, as of this writing, DAL is down 2.5% and the S&P is up ~2%.

[bucolic_frolic]

2. Trump should listen to this guy who speaks New York

Maybe he'd understand then.

Link to tweet

And yeah, the more they give to hedge funds to play the market, the higher stocks go even as their cash flows are worth less and less. This is Financial Theory turned upside down. It makes no sense. Markets are totally discounting any downside from here. All they've done is pad assets again. Meanwhile several retailers pondering bankruptcy. Bread lines out the door and around the block.

And don't miss .......... A second wave of the coronavirus is expected to hit the United States next winter

[turbinetree]

4. We are not smart enough to have your common sense or his.............

this is just amazing.................depression is right around the door, the country has an idiot leading the kool aid drinkers over the cliff, and the sane ones are trying to stop the spread and the banks are still getting there hands in the pot.............what am I missing............I am with that "guy' all the way....................this is just nuts......................

[EarthFirst]

5. Didn't Delta just take an Airbus 350A contract over from United for 10 units?

If the finances in our household were struggling; we certainly wouldn’t be buying more new cars on top of the ones already in the driveway that we aren’t currently using...

[turbinetree]

6. Its called write-off's, they don't have to pay, its like some realty companies having depreciation

costs...........on property..............and in the end you and pay for this, we really do..........while they get the tax break.....

[msongs]

8. so delta has made a profit for 32 quarters and now wants a bailout? heck no nt

[turbinetree]

9. That's about it, did you check out comment #2 on the thread...........its about the way I feel

[denem]

10. Delta 2019: $2 billion in stock buybacks.