Delta Air Lines has posted financial results for the September quarter 2020. Delta’s adjusted operating revenue of US$2.6 billion for the September quarter was down 79% versus the September 2019 quarter, as demand for air travel remains under significant pressure. Passenger revenues declined 83% on 63% lower capacity. Non-ticket revenue streams have performed relatively better than passenger revenues, with total loyalty revenues declining 60% and cargo declining 25%.
Adjusted pre-tax loss of US$2.6 billion excludes US$4.0 billion of items directly related to the impact of COVID-19 and the company’s response, including fleet-related restructuring charges and charges for voluntary separation and early retirement programs for Delta employees, which were partially offset by the benefit of the CARES Act grant recognized in the quarter. Delta posted net loss of US$2.1 billion for the quarter.
Delta ended the September quarter with US$21.6 billion in liquidity. Cash used in operations during the quarter was US$2.6 billion. Daily cash burn averaged US$24 million for the quarter, with an average of US$18 million for the month of September.
At the end of the September quarter, the company had total debt and finance lease obligations of US$34.9 billion with adjusted net debt of US$17.0 billion, US$6.5 billion higher than Dec. 31, 2019. In September, Delta completed its debt offering, raising US$9.0 billion at a blended average rate of 4.75% secured by its SkyMiles loyalty program. In addition, the company borrowed US$1.5 billion at a blended yield of 4.4% in connection with the issuance of tax-exempt bonds, that will be used to finance the LaGuardia airport project. The company’s total debt had a weighted average interest rate of 4.3% at Sept. 30, 2020.Email Post to a Friend