Delta Air Lines (NYSE:DAL) today reported a net loss of over $9 per share, or $5.7 billion, in the second quarter. The net loss includes the recognition of $1.3 billion the company received under the CARES Act payroll support program. Passenger revenue was down 94% compared to a year ago, but "non-ticket" revenue, which includes cargo, fared slightly better, with a decline of 65%. The revenue drop stems from the airline operating at 85% lower capacity than a year ago.

When the company reported first-quarter results in April, it said it was burning through $100 million per day in cash at the end of March. Today, Delta said it had reduced that daily cash burn rate to $27 million for the month of June, and said its goal was to be cash burn breakeven by the end of 2020. 

airplane taking off with the year, 2020, painted on the runway

Image source: Getty Images.

Adjusted revenue was down 91% compared to the year-ago period. Delta CEO Ed Bastion said "we continue to believe that it will be more than two years before we see a sustainable recovery." The company has been focusing on preserving financial liquidity. 

Since early March, including support from the CARES Act payroll support program initiative, the company has raised almost $15 billion from sources that also included a debt offering, aircraft sale-leaseback agreements, and borrowing from credit facilities. It has also made preparations  for $4.6 billion under the CARES Act secured loan program, which the company said it is eligible for, should it decide to participate. It has until Sept. 30 to decide.

Cost-saving initiatives have included plans to retire its entire MD-88, MD-90, 777, and 737-700 fleets in 2020; initiating voluntary separation and early retirement programs; and accelerating airport construction projects in several cities, which will lower overall project costs by moving up the completion timeline. The company said it ended the quarter with $15.7 billion in liquidity.