Delta Sees Cash Burn Improving, On Track for Cash Flow Breakeven by Year End
Delta Air Lines (NYSE: DAL) expects cash burn to fall to $40 million per day by the end of June, $10 million better than the company's previous forecast and down dramatically from the $100 million per day burn in March.
CFO Paul Jacobson, speaking at a virtual investor conference, said the reduced burn is mostly thanks to cost cutting. However, the company has seen "a little bit of a bounce off the bottom" in terms of demand. Airlines have been hit hard by a COVID-19 pandemic-induced slump in travel, though Delta is not alone in seeing signs that demand might have bottomed out.
Image source: Delta Air Lines.
Source Fool.com
