Delta Air Lines (NYSE:DAL) said Thursday it halved its cash burn and narrowed its losses in the fourth quarter as the coronavirus pandemic drove the carrier to its worst year ever.
The Atlanta-based airline posted a net loss of nearly $12.39 billion in 2020 — a record.
Delta swung to a $755 million net loss in the fourth quarter compared with a $1.1 billion profit a year earlier. Total revenue fell 65% from $11.44 billion in the fourth quarter of 2019 to $3.97 billion. The company’s revenue got a $441 million boost from third-party refinery sales. On an adjusted basis, Delta had a per-share loss of $2.53, compared with analyst estimates for a loss of $2.50 a share.
The carrier’s cash burn averaged $12 million a day in the quarter ended Dec. 31, down by half from its average cash burn of $24 million a day in the third quarter. Delta has said it expects to get to cash flow positive by the spring.
The airline will face difficult months ahead but is eyeing a recovery in 2021 as COVID vaccines are administered around the country.
Delta said it expects revenue to fall 60% to 65% in the first quarter of the year from the year-earlier period, just as the pandemic was starting. That’s worse than analyst estimates for a 48% year-over-year drop.
Delta shares were up $1.00, or 2.5% in early Thursday trading, to $41.45, after Delta reported its results.
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