- Which airlines in particular have been hit the hardest by COVIDs Delta Varient
Air travel recovery has hit some problems due to the rise in COVID cases in the United States, Delta, United, American Airlines (A1G) (AAL), Southwest, JetBlue (JBLU), and Frontier all provided updates showing weaker than expected revenue trends and plans to moderate capacity for the final three months of the year.
“During the quarter, demand exceeded expectations in July. In early August, the pace of recovery paused due to the sharp rise in COVID cases,” Delta noted in a stock exchange filing.The airline said it would still make an adjusted pretax profit for the three months to the end of September 2021, but that revenues would now be at the lower end of its previous guidance, citing a delay to business travel recovery.
“As a result of the weakness in revenue that the company has experienced to date and expects to continue to experience, the company now expects an adjusted pre-tax loss in the third quarter of 2021 and if current trends continue, the company also now expects an adjusted pre-tax loss in the fourth quarter of 2021,”. Therefore revised down its profit expectations for the third quarter. It now expects its pretax margin excluding net special items will be between negative 10% and negative 14%, against a previous forecast for negative 3% and negative 7%.