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June 10, 2020, 8:48 a.m. EDT

Delta Air Lines stock extends pullback after revenue outlook is slightly below expectations

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By Tomi Kilgore

Shares of Delta Air Lines Inc. /zigman2/quotes/200327741/composite DAL -3.30% fell 4.5% in premarket trading Wednesday, to extend the previous session's pullback, after the air carrier provided a second-quarter revenue outlook that was slightly below expectations. Delta disclosed that it expects revenue for the quarter ending June 30 to be down 90% from a year ago, as capacity has been reduced by 85%, as a result of the COVID-19 pandemic. The current FactSet consensus for second-quarter revenue of $1.52 billion implies an 87.9% decline from a year ago. Delta also said it expects to cut its average daily cash outflow to about $40 million by June 30, compared with about $100 million as of March 31. The company targets cutting cash burn to "zero" by Dec. 31. "We believe this improvement in average daily cash outflow would result from modest continued demand recovery, particularly with domestic leisure travel beginning to return as states lift shelter-in-place orders, and additional cost-cutting initiatives," Delta stated. The company said it has added 100 additional flights to its domestic schedule in June, and plans to add more in September. Delta said it has raised more than $10 billion through various financing arrangements since early March, and targets having $10 billion in cash, cash equivalents and borrowing capacity as of Dec. 31. The stock had dropped 7.6% on Tuesday to snap a 6-day win streak in which it soared 46.6%. The stock has still lost 24.9% over the past three months through Tuesday, while the U.S. Global Jets ETF /zigman2/quotes/207744796/composite JETS -2.89% has declined 5.7% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.88% has gained 9.0%.

/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 32.84
-1.12 -3.30%
Volume: 35.08M
Sept. 18, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$20.95 billion
Rev. per Employee
$499,337
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/zigman2/quotes/207744796/composite
US : U.S.: NYSE Arca
$ 18.15
-0.54 -2.89%
Volume: 4.33M
Sept. 18, 2020 4:00p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,657.42
-244.56 -0.88%
Volume: 703.89M
Sept. 18, 2020 5:15p
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