Delta Air faces headwinds in meeting cash burn goals

During the COVID-19 crisis Delta Air Lines has raised the equivalent of 19 months of liquidity, and believes it has manageable debt payments occurring over the course of the next year.

The airline is also still working to achieve its previously stated goal of reaching break-even daily cash burn by YE2020, but its daily cash burn will be flat in Jul-2020 compared with Jun-2020, as the rise in COVID-19 infections in the US is pressuring demand. Given the opaqueness of the demand environment, it appears unlikely Delta can drive its cash burn to zero by year-end.

Similarly to other airlines, Delta is holding discussions with it largest aircraft supplier, Airbus, about the future of its order book - the airline unsurprisingly has declared that it does not need any aircraft as hundreds of its jets remain grounded.