Cash reduction by half

Delta Air Lines said Thursday it halved its cash burn and cut its losses in the fourth quarter as the coronavirus pandemic brought the carrier to the worst year in history.

The Atlanta-based airline reported a net loss of about $ 12.39 million in 2020, a record, according to FactSet data.

Below is Delta’s performance during the quarter, compared to what Wall Street expected, according to average estimates compiled by Refinitiv:

• Adjusted earnings per share: $ 2.53 loss versus $ 2.50 expected loss
• Total Revenue: $ 3.979 billion, compared to projected revenue of $ 3.59 million

Delta posted a net loss of $ 755 million in the fourth quarter compared to a profit of $ 1.1 billion the previous year. Total revenue fell 65%, from $ 11,444 million in the fourth quarter of 2019 to $ 3,979 million. The company’s revenue was boosted by $ 441 million from third-party refinery sales. Tightly adjusted, Delta had a loss per share of $ 2.53, compared to analysts ’estimates for a loss of $ 2.50 per share.

The company’s cash burn was $ 12 million a day in the quarter ended Dec. 31, half the average cash burn of $ 24 million a day in the third quarter. Delta has said it expects to get a positive cash flow before spring.

Delta shares rose 1.5% in pre-market trading after Delta reported its results.

The airline will face tough months, but is recovering in 2021 as Covid vaccines are administered nationwide, said Ed Bastian, CEO.

“While our challenges continue in 2021, I am optimistic that it will be a year of recovery and a turning point that will lead to an even stronger Delta that will return to revenue growth, profitability and free generation of effective, “Bastian said.

Delta said it expects revenues to fall from 60% to 65% in the first quarter of the year over the previous period, just as the pandemic began. This is worse than analysts estimate for a 48% year-over-year drop.

The pandemic devastated travel demand as concerns about the virus, quarantines, travel restrictions and breaks in business travel kept millions of potential customers at home. The Transportation Security Administration examined only 324 million passengers last year, up from 824 million in 2019.

Airline executives have hoped the vaccine launch would provide some relief, but have repeatedly warned it will not be immediate.

“The first part of the year will be characterized by a recovery in hectic demand and a reserve curve that remains compressed, followed by a turning point and finally a sustained recovery in demand as confidence of the customer gains momentum, vaccinations become widespread and offices reopen. ” Delta President Glen Hauenstein said in the earnings statement.

Delta said it ended the fourth quarter with $ 16.7 billion in liquidity. Delta increased debt by billions last year, including a record $ 9 billion debt sale, backed by its SkyMiles frequent travel program.

The carrier and its rivals also receive additional federal funds to help overcome the crisis. Congress late last year approved additional $ 15 billion in federal aid to airlines to pay workers, in addition to the $ 25 billion in government payroll support they received under the CARES Act of March.