Delta Air Lines hailed a $5.4 billion boost from federal funds as it revealed a pre-tax loss of $607 million for the three months to March, the carrier’s first quarterly loss in a decade.
Chief executive Ed Bastian reported the airline had halved its running costs to $50 million a day since March and retained $6 billion in liquidity.
The airline later revealed plans to raise a total of $3 billion in a share offering and loans to bolster its liquidity position.
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The carrier reported an adjusted pre-tax loss of $422 million for the quarter.
Bastian forecast revenues for the three months to June would be 90% down year on year, with 80% of Delta’s domestic services and 90% of international flights suspended.
Delta has parked more than 650 aircraft and put 37,000 employers on voluntary unpaid leave.
Bastian said: “Delta is taking decisive action to prioritise the safety of our employees and customers while protecting our business and bolstering liquidity.”
The carrier is offering travel credits to passengers in lieu of refunds for cancelled flights with expiry extended to two years.
It gave no details on the numbers accepting these.
Bastian reported Delta had raised $5.4 billion in capital since early March, reduced planned capital expenditure by more than $3 billion and ended payment terms with airports, vendors and lessors.
The carrier had sought aid under the US Coronavirus Aid, Relief and Economic Security (CARES) Act and secured $5.4 billion in payroll support made up of $3.8 billion in direct relief and $1.6 billion in a low-interest loan.
It received the first $2.7 billion of these funds on Monday and expects to receive the remainder within the next three months.
The carrier is also eligible for a further $4.6 billion in secured loans.
Bastian welcomed the support under the CARES Act saying it “recognises the important role airlines play in the US economy.
“The Payroll Support Programme will help safeguard Delta jobs while positioning our nation for recovery.”
Delta chief financial officer Paul Jacobson said: “We were burning $100 million per day at the end of March. We expect that cash burn to moderate to $50 million per day by the end of the June quarter.
“We expect to end the June quarter with $10 billion in liquidity.”
Delta reported it had adopted new cleaning procedures on flights and was encouraging social distancing by blocking middle seats and modifying its boarding process.
