Originally Posted by
DALFA
Most recent communications from execs say that we're burning thru $50 million per day. They also say our operating costs are down more than 50%.
So how are we losing $50 million per day if our operating costs alone are less than half what they were before?
In 2Q19 Delta reported operating costs of $10.3 billion. If our costs are done more than half then that means our costs are $5 billion (or less) for the quarter.
Now throw in the revenue from charters, cargo, AmEx, and the passengers that are flying (they said 25% load factor in the most recent townhall).
$50 million loss per day x 90 days in a quarter = $4.5 billion loss
Is it me or does the math just not add up?
Because revenue is down +90%.
Simple numbers for easy math
Annual revenue = $45B ($123M per day)
Annual cost = $40B ($110M per day)
(123*10%) - (110*53%) = $46M loss per day
Additionally, 60% of the reduced cost (110*53%*60%) is wages and benefits.