Delta Air Lines Sees Slowing Demand as Covid-19 Cases Rise
DOW JONES & COMPANY, INC. 9:44 AM ET 12/3/2020
Symbol Last Price Change | DAL | 41.8911 | +0.8211 (+1.9993%) | | QUOTES AS OF 09:44:52 AM ET 12/03/2020 |
Delta Air Lines Inc. (DAL) said it has seen some slowing of demand and forward bookings as Covid-19 cases have risen across the U.S.
"We've always said this was going to be a choppy recovery, and that's been true in recent weeks--like others in the industry, we've seen some slowing of demand and forward bookings as Covid cases have risen across the U.S. Revenues are slowly coming back, but we still expect to be at just 30 percent of our 2019 levels for the fourth quarter," Chief Executive Ed Bastian said in a memo to employees that was filed with the Securities and Exchange Commission.
"That slowdown has pressured our daily cash burn by about $2 million per day and we're now expecting to end up around $12 million to $14 million per day for the quarter," the memo said.
That would be an improvement from the $24 million daily burn rate in the third quarter, Mr. Bastian said in the memo.
"While the environment continues to be volatile, I'm encouraged that we are still on track to reach the break-even point in the spring, and that outlook has been bolstered by continued positive developments with vaccines," the memo said.
Shares were up 5%, to $41.87, in early trading.
Write to Michael Dabaie at michael.dabaie@wsj.com |
