Delta Air Lines reports multi-billion dollar losses due to the Covid-19 pandemic
Delta Air Lines constantly acquired stakes in foreign airlines from the UK to Chile to grow internationally, but the pandemic turned over all of the company’s plans. According to the rules of foreign ownership, direct airline purchases abroad are prevented, but equity investments and other partnerships have proven popular with carriers. As travel stopped and flights became unavailable, companies suffer losses. Delta’s revenues from the domestic passengers, which account for more than three-quarters of ticket sales, fell 93% in the second quarter from a year earlier, but revenue fell 98% in Latin America and 97% for transatlantic routes.
On Tuesday, Delta reported a net loss of $ 5.7 billion, which was its largest quarterly loss in 12 years, according to CNBC. But despite these losses, the company adheres to its original plan to capture the international market by buying shares. Also, it incurred $ 770 million in investments in Aeromexico after it suffered financial losses, and the Mexican airline filed for bankruptcy protection. And Delta took over $ 200 million for investing in Virgin Atlantic.