Delta Air Lines Announces Fourth Quarter Net Loss of $755 Million, Full Year Loss of $12.4 Billion
The company reported a fourth quarter loss of $755 million or ($1.19) per diluted share and a full year loss of $12.385 billion or ($19.49) per diluted share. For 2020, adjusted operating revenue declined 66 percent to $15.9 billion.
On Thursday (January 14, 2021), Delta Air Lines announced their fourth quarter and full year 2020 financial results. The company reported a fourth quarter GAAP pre-tax loss of $1.1 billion or ($1.19)/share on total revenue of $4.0 billion. Delta’s Q4 adjusted pre-tax loss was $2.1 billion or ($2.53)/share on adjusted operating revenue of $3.5 billion, while the carrier's net loss for the quarter was $755 million or ($1.19) per diluted share. For the full year, Delta reported a GAAP pre-tax loss of $15.6 billion or ($19.49)/share on total revenue of $17.1 billion and an adjusted pre-tax loss of $9.0 billion or ($10.76)/share on adjusted operating revenue of $15.9 billion. Delta’s FY 2020 net loss was $12.385 billion. In Thursday’s announcement, Delta Air Lines Chief Executive Officer, Ed Bastian, said,
“Our December quarter results capped the toughest year in Delta’s history. I want to thank the Delta people who have risen to the occasion, focusing on delivering results for all of our stakeholders by putting our customers at the center of our recovery. 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.”
The company’s adjusted fourth quarter pre-tax loss of $2.1 billion excludes charges related to employee pay and benefit changes, which were offset by a U.S. Cares ACT Payroll Support Program (PSP) grant recognized during the quarter. For Q4, adjusted operating revenue declined 62 percent to $3.5 billion on a 62 percent year-over-year capacity reduction. Total operating expenses (including $930 million in items described above) decreased year-over-year by $5.2 billion. With adjustments and third-party refinery sales, Delta’s Q4 operating expenses decreased $4.6 billion or 47 percent compared to the same period last year.
For the full year 2020, Delta reported a pre-tax loss of $9.0 billion, excluding a net of $6.6 billion in COVID-19 related items. The carrier’s operating revenue for the year declined 66 percent to $15.9 billion on a year-over -year capacity reduction of 61 percent. Total operating expenses for 2020, including $4.3 billion of pandemic-related and other items, decreased $10.8 billion compared to the previous year. With adjustments and third-party refinery sales, 2020 operating expenses decreased by $16.0 billion or 40 percent compared to last year.
During the fourth quarter, Delta reduced their daily cash burn to approximately $12 million per day, a 90 percent reduction since late March. The company ended the year with $16.7 billion in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities. In trading Thursday morning, shares in Delta Air Lines (NYSE: DAL) were 4.48% higher at $42.25/share (10:21 AM EST).
Source: Delta Air Lines