Delta Projects 90% Revenue Drop in 2Q, 'We Know We Still Haven't Seen the Bottom'
April 03 2020 - 5:48PM
Dow Jones News
By Maria Armental
Delta Air Lines Inc. is preparing for a 90% projected revenue
drop in the second quarter, following a quarter "unlike any in
Delta's history," Chief Executive Ed Bastian said Friday in a memo
to company workers.
Delta, which Friday applied for government aid to help stem the
losses from the coronavirus pandemic, is burning through more than
$60 million a day and "we know we still haven't seen the bottom,"
Mr. Bastian said.
Some 115,000 flights have been cancelled, cutting the company's
schedule by more than 80%, he said. "But the reality is we simply
don't know how long it will take before the virus is contained and
customers are ready to fly again."
The chief executive said some 30,000 Delta workers had taken
unpaid leaves to help stanch the cash bleed but more would have to
take unpaid leaves of up to a year.
The company has offered free flights for medical workers and
cargo shipments of medical supplies as part the response to the
pandemic.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
April 03, 2020 17:33 ET (21:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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