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Bloomberg
Delta Air Lines Inc is suspending its dividend and share repurchase programme as US carriers seek a $58 billion government bailout.
The airline also entered into a $2.6 billion secured credit facility, enhancing liquidity amid a daily cash burn of $50 million as travel demand collapses because of the coronavirus pandemic.
The company is also drawing $3 billion under its existing revolving credit facilities.
“Our revenue outlook continues to deteriorate in the short term with the decline in travel demand,†CEO Ed Bastian said.
“We’re now projecting our June quarter revenues will be down by $10 billion compared to a year ago — an 80% reduction. It’s also clear, given the underlying damage the virus has created to the overall economy, that demand recovery will take an extended period once the virus is contained.â€