Delta CEO Ed Bastian nonetheless asserts that 2021 will be the year of “recovery” for the American company and that it will see Delta return to growth and profitability.
The figure is very impressive. The American company Delta has announced its financial results for the fourth quarter of 2020 and for the year as a whole, strongly impacted by the global air transport crisis linked to the Covid-19 pandemic. The Skyteam member company thus published a net loss of $ 12.4 billion for the year 2020, compared with a net profit of $ 4.8 billion for the year 2019. In the third quarter of 2020, the company lost another 12 million dollars a day.
No dry layoffs
For the first quarter of 2021, Delta still expects to lose between 10 and 15 million dollars per day, with capacity down 35% compared to the first quarter of 2019.
Total turnover is expected to be still down 60 to 65%. The American company also specifies that it ended its year with a total cash flow of $ 16.7 billion.
Given the state aid that it still has to receive, it plans to complete the first quarter of 2021, with a cash flow of between 18 and 19 billion dollars. Delta also states that it managed to avoid redundancies in 2020. On the other hand, nearly 18,000 employees, or nearly 20% of the workforce, chose to voluntarily leave the company last year.
It also does not foresee any redundant layoffs by March 2021 when the second round of government assistance ends. However, it has announced that it plans to reduce its total fleet by 400 aircraft by 2025, for reasons of cost reductions.