A $12 billion loss for 2020, Delta is cautious in early 2021

Delta Air Lines closed the books on a disastrous 2020 with a comparatively small fourth-quarter loss, and executives expect a few more rocky months before — they hope — widespread coronavirus vaccinations and testing might salvage something of the upcoming summer travel season.

Delta on Thursday reported a quarterly loss of $755 and $12.4 billion in losses for all of 2020. It is the largest annual loss in the history of the airline, which dates to the 1920s, and the global pandemic ended a decade in which Delta churned out a profit each and every year.

The fourth-quarter numbers likely would have been worse but for a December increase in air travel that likely contributed to another surge in virus infections as millions crossed the country to spend time with family and friends during the holidays.

Delta is the first major U.S. airline to report year-end financial results and the numbers suggest more big losses to come as other carriers post quarterly numbers. U.S. air travel in the fourth quarter was down more than 60% compared with the previous year, as travel restrictions and fear of contracting the virus kept most travelers grounded.

Much like most of last year, the 2021 outlook for Delta and other airlines is intertwined with how quickly the United States and other nations can vaccinate enough of their citizens against the coronavirus so that travel restrictions can be eased.

Delta predicts that first-quarter revenue will fall 60% to 65% from the same period in 2019 — almost the same as the 65% decline in the fourth quarter. It expects to lose $10 million to $15 million a day in the next three months. After that, however, Delta sees things getting.

CEO Ed Bastian is sticking to a prediction that Delta will reach break-even in the second quarter.

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