Why Delta Air Lines Shares Lost Altitude in July
Shares of Delta Air Lines (NYSE: DAL) lost 11% in July, according to data provided by S&P Global Market Intelligence, as investors grappled with continued uncertainty surrounding air travel during the COVID-19 pandemic. A recovery is going to take a long time, and most investors have decided to wait it out on the sidelines.
We went into earnings season expecting airlines to post ugly second-quarter numbers, and the industry did not surprise. On July 14 Delta reported it lost $4.43 per share on sales of just $1.2 billion, even worse than the $4.12 per share loss on revenue of $1.4 billion that had been expected.
Given the extent to which COVID-19 had disrupted air travel, the estimates were little more than a shot in the dark, and Delta made it clear it doesn't expect conditions to improve much for the rest of the year. Delta is making progress bringing down cash burn, reporting average daily burn of $27 million in June, down from $43 million average daily burn for the entire quarter. The company had $15.7 billion in total liquidity as of June 30.
Source Fool.com
