Delta Air Lines Earnings: Signs of Progress Despite Weak Demand
Delta Air Lines (NYSE: DAL) reported its third-quarter earnings on Tuesday. As expected, the headline numbers were awful. Indeed, Delta missed analysts' estimates for revenue and earnings, posting adjusted revenue of $2.65 billion (down 79% year over year) and an adjusted net loss of $3.30 per share. The analyst consensus had called for an adjusted loss of $3.00 per share on $3.11 billion of revenue.
Shares of Delta Air Lines moved lower following the earnings report. However, Delta demonstrated good progress where it matters: cutting costs, reducing cash burn, and aligning its aircraft orders with projected demand.
Since the pandemic began, Delta Air Lines has moved aggressively to secure structural cost reductions. It has retired (or made plans to retire) numerous aircraft types, simplifying its fleet to improve productivity and reduce maintenance costs. It has cut overhead spending. The airline also rolled out a voluntary early retirement program, coaxing nearly 20% of its workforce -- mainly senior, higher-paid employees -- to leave the company permanently.
Source Fool.com
