Delta sees cash losses mounting as virus slows travel

Delta warned that cash losses could be deeper than expected this quarter, reaching as much as $14m a day, as the surge in coronavirus cases undermines travel demand. The carrier also urged all employees to get tested weekly to stem the spread of Covid-19 and said it would begin a contact tracing program on Dec. 15 for international passengers, working with other carriers and the US CDC. Delta now expects to burn $12m to $14m in cash daily this quarter, up from an earlier outlook for as much as $12m, according to a securities filing Thursday. Q4 revenue is still expected to be 30% of what it was a year earlier. The carrier’s dimmer outlook follows similar recent warnings from its biggest US rivals about slipping demand and canceled trips as Covid-19 hospitalizations keep setting records. That reverses an earlier trend in which bookings were independent of the rise and fall of cases. While US air travel jumped for the Thanksgiving holiday, it was just 41% of last year’s level. “While the environment continues to be volatile, I’m encouraged that we are still on track to reach the break-even point in the spring, and that outlook has been bolstered by continuing positive developments with vaccines,” CEO Ed Bastian said in a memo to employees included in the filing. Delta hasn’t decided whether it will require coronavirus vaccinations for employees before they can fly, but Bastian said the carrier would “strongly encourage” it for all airline workers. It’s likely that passengers on international flights will be required to get vaccinated, he said.<br/>