Delta Air Lines reported its first quarterly loss in over 5 years, as the coronavirus pandemic ravaged the travel industry. With much of the world subject to travel restrictions and govt orders to stay home, air travel has largely ceased. Passenger volumes have plummeted 95% in the US, and airlines expect fears of illness to weigh heavily on travel demand for the foreseeable future. For Delta and other airlines, the virus interrupted a historic boom in business. Delta had posted 10 consecutive years of annual profits and was anticipating another year of buoyant demand in 2020. Delta CE Ed Bastian told employees the recovery could take 2 to 3 years. “We do know that Delta will be a smaller airline for some time, and we should be prepared for a choppy, sluggish recovery even after the virus is contained,” he said. <br/>
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Delta CE Ed Bastian said Wednesday the airline would investigate and support a wide range of possible measures to help jump-start air travel during a recovery that he expects will take 2 to 3 years. "When you ask people what the most important thing is to get them to start traveling, it's confidence in their safety," Bastian said. "We have medical advisors that we work with, and we'll continue to work with to help them translate the return of business to where people feel safe. We'll make whatever changes to the business model that will be necessary," he added. Bastian suggested that virtually all options were on the table as well, including selling fewer tickets for each flight once travel begins to return to enable social distancing on planes. The remaining tickets would likely be priced higher. <br/>
The co-owner of Virgin Atlantic Airways said it’s unable to invest more in Richard Branson’s struggling UK airline, and raised the possibility it could face going through insolvency proceedings. Delta Air Lines, which owns a 49% stake in Virgin Atlantic, can’t help out because it’s consumed with its own problems and has already bumped up against UK limits on foreign airline ownership, CE Ed Bastian said Thursday. “With our crisis in cash, we need to protect our own business. That’s where our focus is,” Bastian said. “If they are required to go through an administration process in the UK, I’m confident they could re-emerge.” The blunt commentary offers a window into the peril facing Branson, who’s swiftly become the highest-profile victim of an airline-industry crisis that’s only just getting started. <br/>
Air France-KLM is moving towards a E10b (US$10.b) govt-backed rescue deal, sources said, after France agreed to higher guarantees on loans designed to tide the airline group through the coronavirus crisis. Paris is ready to vouch for 90% or more of the bank loans to Air France, rather than the 70% initially offered, people with knowledge of the matter told Reuters. The increased guarantees were first reported by La Tribune Wednesday. Air France-KLM representatives and the French finance ministry declined to comment. Banks had been holding out for an improvement on the 70% French guarantees offered for about E4b in loans to Air France, to be accompanied by close to E2b in Dutch-backed lending to KLM, Reuters reported April 3. <br/>