Delta Air Lines (NYSE:DAL) is halving the number of flights it planned to add next month as the coronavirus pandemic saps demand. The carrier posted a $5.7-billion net loss in the second quarter, its biggest since 2008.
The Atlanta-based airline planned to add 1,000 flights a day in August but will now add just 500. Demand has softened as new coronavirus cases climb and states like New York tell arriving travelers to quarantine in an effort to stop the disease from spreading.
"Demand has stalled as the virus has grown, particularly down here in the South, across the Sun Belt, coupled with the quarantine measures that are going in place in many of the northern states," CEO Ed Bastian told the media Tuesday. "Those two factors are causing consumers to pause."
Delta slashed its daily cash burn to $27 million by the end of June from roughly $100 million a day at the end of March. The airline has said it wants to break even by the end of the year.
Bastian said Delta will likely have a similar cash burn in July and that it needs to see renewed confidence from customers willing to travel to further reduce that amount.
Delta’s revenue in the quarter ended in June fell 88% from a year ago to $1.47 billion, slightly higher than analysts’ estimates and roughly in line with the carrier’s forecast for a 90% drop. On an adjusted per-share basis, Delta lost $4.43, above the $4.07 per-share loss analysts forecast.
Shares in the carrier descended 20 cents to $26.62.
