A Delta Air Lines passenger jet taxis on the tarmac at LaGuardia Airport in the New York City borough of Queens on September 7, 2016.Delta Air Lines further slowed its cash burn in the final quarter of 2020, it said Thursday. Business travel, an important profit center for carriers, isn't likely to return until the second half of the year, CEO Ed Bastian said.
In the first quarter, the Atlanta-based airline expects revenue to fall by 60% to 65% from a year ago and its scheduled flight capacity to shrink by 35%. Business travel should pick up in the second half of the year but remain muted for a period of time, he said. Global airline industry body IATA believes a return to positive cash flow for the industry might not happen this year, Chief Economist Brian Pearce said on Thursday, as a resurgence in lockdowns has killed off a fragile bookings upturn.
Delta has avoided furloughs but said nearly 18,000 employees, or 20% of its workforce, decided to leave the company in 2020.
And they will have more loses since passengers with dogs are flying with other companies.