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Delta posts quarterly loss, 17,000 employees sign up for buyouts and early retirements

Kelly Yamanouchi, The Atlanta Journal-Constitution on

Published in Business News

To cut its staff, the airline has been offering buyouts and early retirements. Delta and other airlines have said if they cannot cut their staffs enough through voluntary measures, they would resort to layoffs.

The airline had additional charges for airplane retirements, write-downs of its investments in struggling airline partners including LATAM and Aeromexico, which filed for bankruptcy protection, as well as Virgin Atlantic. Adjusted for those factors and others, it said its quarterly adjusted pre-tax loss amounted to $3.9 billion.

Delta has benefited from government rescue funding for airlines, getting $5.4 billion of grants and unsecured loans through the CARES Act.

It has also raised billions in other loan financing for a cash position of $15.7 billion at the end of June. The company in June burned through an average of $27 million a day in cash, but expects to reach breakeven by the end of the year. Even without improvements in the business, Bastian said the amount of cash the company has built up should last for 19 months.

"I think our cash position has certainly stabilized," he said.

 

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