Delta Air Lines on Friday warned the coronavirus pandemic will cut its second quarter earnings by 80 per cent compared to 2019, and ratings agency S&P said other US carriers faced similar fates.
"We're now projecting our June quarter revenues will be down by USD 10 billion compared to a year ago -- an 80 per cent reduction," Delta's chief executive Ed Bastian said in a note to employees.
The hotel and travel industries have borne the initial brunt of the impact of the drastic shutdowns caused by the global virus outbreak, but worse may be ahead, Bastian said, and "recovery will take an extended period once the virus is contained."
Amid the spreading economic carnage, Bastian said there are now 13,000 employees who have taken voluntary unpaid leave, and "we could use more."
In a regulatory filing, Delta also announced it had taken out a USD 2.6 billion loan that was secured by "certain aircraft."
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