Delta: Q2 revenue to drop $10B over COVID-19
As a result of the global coronavirus pandemic, Delta said its revenue in the second quarter will drop 80% to $10 billion.
The airline added that it is halting its stock repurchase program and dividend payment and is entering into a $2.6 billion secured credit facility to help liquidity. Additionally, Delta will draw $3 billion under its existing revolving credit facilities. Delta CEO Ed Bastian stated: “Maintaining ample liquidity during this crisis is critical to the essential service that Delta provides in America’s transportation infrastructure as well as the jobs of more than 90,000 Delta people across the country.”
Delta’s announcement came after United Airlines threatened to cut jobs unless it gets a government bailout as the United States Congress discusses a $1 trillion package to help the economy which includes $50 billion for airlines.
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