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15-Jul-2020 3:38 PM

Delta Air Lines CEO: More than two years until 'sustainable recovery'

Delta Air Lines CEO Ed Bastian reported (14-Jul-2020) the carrier recorded an adjusted pre tax loss of USD3.9 billion in 2Q2020 and more than USD11 billion in revenue decline compared to 2019, illustrating the "truly staggering impact of the COVID-19 pandemic on our business". Mr Bastian continued: "Given the combined effects of the pandemic and associated financial impact on the global economy, we continue to believe that it will be more than two years before we see a sustainable recovery". The carrier will work to utilise its people, brand, network and operational reliability to position it for success "when demand returns". Measures taken by Delta to position it for recovery following COVID-19 include the following:

  • Retired MD-88, MD-90, Boeing 777 and 737-700 fleets, and partial retirement of 767-300ER and A320 fleets in 2020;
  • Accelerated airport construction projects in Los Angeles, New York LaGuardia and Salt Lake City, in an effort to lower total costs and shorten timelines;
  • Launched voluntary separation and early retirement programmes;
  • Obtained USD5.4 billion in grant funds and unsecured loans through the PSP programme, to be paid in instalments until Jul-2020;
  • Extended maturities of USD1.3 billion in borrowings under revolving credit facilities from 2021 to 2022;
  • Amended credit facilities to replace all fixed charge coverage ratio covenants with liquidity based covenants. [more - original PR]

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