Delta Air Lines (NYSE:DAL), one of the biggest air carriers in the US, also stuck badly by the ongoing COVID-19 Pandemic and it is expected that company’s second-quarter 2020 revenues to plunge 90% as passenger volumes and revenues continue to decline. Right from the start of COVID-19 Pandemic, the carrier has seen unlike circumstances, which it has never been witnessed before. Things expected to get much messier for the company as the concerns for the COVID-19 Pandemic continues are on the surge.
DAL, which was considered as one of the finest carriers in the World, is witnessing the loss of whopping 60m USD each day that forces the company cut its capacity be only offering the essential services to its customers. In April 2020 alone, the US-based air carrier is expected to reduce its capacity to 80% with a flight cancellation ratio of just below than the figure of 120,000.
In order to protect the financial interest of its employees, the Atlanta-based carrier has submitted a request a bailout for coronavirus. However, the CEO of the company feels that the without the efforts of raise financing, the financial aid could not last beyond June.
The US-based company is now encouraging its employees to continue applying for unpaid leaves of absence. In-line with its fund-raising efforts, the company has just started offering long-term leave opportunities for 6, 9 and 12 months. So far, more than 30,000 employees have availed these services for unpaid leaves of absence.
Due to the looming economic condition of the company, the shares of the US-based carrier has plunged more than 59% since February and the ratio is expected to worsen in coming months.
Economic Woes Forced Investors To Sell DAL Stakes:
The recent economic woes of the company forces investors to sell the stakes of the company. The leading stock investor Warren Buffet’s Berkshire Hathaway BRK.B has sold a portion of its stake in the Southwest Airlines and Delta airlines. After selling more than 12.9 million shares of DAL, the Berkshire has now owns 9.2% shares of Atlanta-based carrier. Furthermore, the company has now own 9.9% shares in Southwest after selling 2.3 million shares in the same period.
DAL & Zacks Rank:
DAL carries a Zacks Rank # 3 (Hold), which is slightly down as compared to Spirit Airlines by holding a Zacks Rank #2 (Buy).
The Spirit Airlines has remarkable earning track record and it has also beaten the Zacks Consensus Estimate in 3 of the last 4 quarters.
Stakes High at Multi-Billion Dollars Biotech Industry:
As the Scientists develop the treatment for thousand of diseases, the Biotech sector is expected to pass the mark of whopping 770 Billion USD by the year of 2024. Moreover, the scientists also working on changing the human genome that makes it invincible against these diseases.