Atlanta-Based Delta Reports $5.4 Billion Quarterly Loss

ATLANTA, GA — Delta Air Lines announced Tuesday its third quarter financial reports. The airline loss $5.38 billion this quarter.

Part of the loss comes from the voluntary separation and early retirement programs the airline created for employees due to the COVID-19 pandemic. Some of it stems from restructuring charges from fleet-related discussions. As a result of these decisions, the company recorded $2.2 billion in fleet-related charges.

Approximately 18,000 employees participated in the programs, with most leaving the company Aug. 1, resulting in a $3.1 billion restructuring charge in the September quarter. Cash payments totaled $813 million in the September quarter.

There was a reduction in fuel expense, maintenance and Delta retired nearly 40 percent of its mainline aircraft. Salaries and benefits were down 32 percent.

“With a slow and steady build in demand, we are restoring flying to meet our customers’ needs, while staying nimble with our capacity in light of COVID-19,” said Glen Hauenstein, Delta’s President in a statement. “While it may be two years or more until we see a normalized revenue environment, by restoring customer confidence in travel and building customer loyalty now, we are creating the foundation for sustainable future revenue growth.”

Delta reported a $2.8 billion loss for its second quarter. The airline canceled half of its flights for the month of August.

Earlier this month, Delta said it will avoid furloughs for many employees and pilot furloughs until at least Nov. 1.