Delta Reports Record Loss of $12.4 Billion in 2020

Delta Air Lines announced financial results for fourth quarter of 2020 as well as for the calendar year.

The Atlanta-based carrier posted a net loss of $12.4 billion in 2020 amidst the coronavirus pandemic-induced decline in travel.  The airline also reported a $755 million net loss in the fourth quarter compared with a $1.1 billion profit in the same period in 2019.

The airline expects a “stronger” 2021, as coronavirus vaccinations start to roll out.

“While our challenges continue in 2021, I am optimistic this will be a year of recovery and a turning point that results in an even stronger Delta returning to revenue growth, profitability and free cash generation,” Bastian said.

Revenue declined 65% from $11.44 billion in the fourth quarter of 2019 to $3.97 billion.  Delta’s cash burn averaged $12 million a day in the quarter ended Decemeber 31, down by half from an average cash burn of $24 million a day in Q3. Delta has said it expects to get to cash flow positive by the spring.

In addition to passenger and freight revenue, the company said it saw $441 in revenue from third-party refinery sales in the quarter.

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