By Yasin Ebrahim
Investing.com – Delta Air Lines warned revenue was expected to plunge 80% in the second-quarter year-on-year as the Covid-19 pandemic has wreaked havoc on travel demand.
Delta Air Lines (NYSE:) was up 0.19% in after-hours trading.
“Our revenue outlook continues to deteriorate in the short term with the decline in travel demand. We’re now projecting our June quarter revenues will be down by $10 billion compared to a year ago – an 80 percent reduction. It’s also clear, given the underlying damage the virus has created to the overall economy, that demand recovery will take an extended period once the virus is contained,” Delta Air Lines said in an internal memo.
The warning comes as the airline industry has called on the U.S government for financial support at a time when many fear businesses in the sector face extinction amid a plunge in travel demand due to the rapid spread of the coronavirus.
“We also continue working with the President and Congress on disaster relief assistance, which is vital to protect our industry’s critical role in our nation’s economy. Amid those discussions, in recent days some critics have argued that the airlines have not been good stewards of our money during our profitable years,” Delta added.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.