Jan. 14, 2021, 1:11 p.m. EST

Delta Lowers Cash Burn

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Jan 14, 2021 (Baystreet.ca via COMTEX) -- Delta Air Lines /zigman2/quotes/200327741/composite DAL -2.62% said Thursday it halved its cash burn and narrowed its losses in the fourth quarter as the coronavirus pandemic drove the carrier to its worst year ever.

The Atlanta-based airline posted a net loss of nearly $12.39 billion in 2020 -- a record.

Delta swung to a $755 million net loss in the fourth quarter compared with a $1.1 billion profit a year earlier. Total revenue fell 65% from $11.44 billion in the fourth quarter of 2019 to $3.97 billion. The company's revenue got a $441 million boost from third-party refinery sales. On an adjusted basis, Delta had a per-share loss of $2.53, compared with analyst estimates for a loss of $2.50 a share.

The carrier's cash burn averaged $12 million a day in the quarter ended Dec. 31, down by half from its average cash burn of $24 million a day in the third quarter. Delta has said it expects to get to cash flow positive by the spring.

The airline will face difficult months ahead but is eyeing a recovery in 2021 as COVID vaccines are administered around the country.

Delta said it expects revenue to fall 60% to 65% in the first quarter of the year from the year-earlier period, just as the pandemic was starting. That's worse than analyst estimates for a 48% year-over-year drop.

Delta shares were up $1.00, or 2.5% in early Thursday trading, to $41.45, after Delta reported its results.

COMTEX_377677183/2559/2021-01-14T13:11:05

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 48.30
-1.30 -2.62%
Volume: 7.06M
Feb. 25, 2021 12:05p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$31.65 billion
Rev. per Employee
$231,014
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