The Strategist

Delta Airlines ends 2020 with a record loss of $12.4B

01/15/2021 - 09:27

Delta Airlines published its financial report for the year 2020, according to which the airline's net loss was $12.4 billion, the worst figure in the history of the company.

Quintin Soloviev
Quintin Soloviev
Despite an increase in traffic in the fourth quarter due to the Christmas holiday, the company's operating revenue fell $7.47 billion (65%) from a year ago. Annual revenue in 2020 was $29.9 billion (64%) lower than in 2019.

The extent of the COVID-19 pandemic's impact on Delta Airlines is underscored by the fact that 2019 was also a record year for the airline, but in a positive way. At that time, the company managed to achieve revenue of $47 billion and net income of $4.77 billion.

That said, management expects Delta to be able to return to profitability as early as the second half of 2021. However, the likelihood of such a scenario will entirely depend on the situation around the pandemic, said the airline CEO Ed Bastian in an interview with CNBC.

Note that according to the U.S. Transportation Security Administration (TSA), 61% fewer passengers than the year before were recorded in the U.S. airports due to the pandemic coronavirus in 2020.