As countries worldwide shut down borders and limiting travel to contain the spread of the Covid-19 pandemic, the global airline industry took a hit, losing a total $110 billion of which Delta Airline led the pack with $22.4 billion plunge according to data from StockApps.com,
Other world’s largest public airlines based on sales that are involved are American Airlines, Lufthansa Group, United Airlines, Air France, and the International Airlines Group.
At the heights of the pandemic which disrupted businesses worldwide were massive cancellations of flights to control the spread of the virus. This led to huge drops in airline passenger revenues and caused staggering losses to the world’s largest airline companies.
Of the total $110 billion loss, StockApps.com reported that airlines from the United States lost a total $63.9 billion, representing the biggest drop in revenues since the beginning of the year. Three Largest European Airlines Lost $45.9bn in revenue
Between January and March, Delta Air Lines (NYSE: DAL), as the world’s largest airline based on sales, lost $1.8bn. The company’s earnings report showed the second quarter of the year delivered six-time severer loss, with revenue plunging by 88% year-over-year to $1.4bn. The strong negative trend continued between June and September, with the company losing another $9.5bn after the coronavirus pandemic ruined what is typically a peak summer travel period.
Delta’s net loss was $5.4bn in the third quarter, compared to a profit of $1.5bn in the year-earlier period. Statistics show the world’s leading airline lost $22.4bn in YTD revenue, the worst hit among the six leading companies.
American Airlines (NASDAQ: AAL), the second-largest airline on this list and the leading airline by flown passenger kilometres, lost $21.1bn in revenue since the beginning of the year. Statistics show the company reported the most significant loss in the second quarter of 2020, with revenues plunging by 86.4 per cent year-over-year to $1.6bn, compared to $11.9bn in the same period a year ago. Third-quarter revenue was down 73 per cent YoY to $3.1bn, following a 59 per cent YoY reduction in total available seat miles.
United Airlines, as the third-largest US airline company and the fourth-largest globally, reported a $20.4bn loss in the three quarters of 2020, a 63% decrease year-over-year. Third-quarter results revealed a massive $8.8bn revenue drop after the company already reported a $10bn loss between March and June. The Yahoo Finance data also revealed United Airlines witnessed the most significant drop in market cap among the three leading airlines in the United States, with the combined value of the company’s shares plunging by 57 per cent YoY to around $9.5bn.
Statistics show the combined revenues of the three largest US airline companies crashed by $63.9bn since the beginning of 2020.
Although the US airlines have taken the hardest hit amid the coronavirus crisis, the European companies also reported tremendous losses in 2020. The world’s third-largest airline based on sales and the largest in Europe, Lufthansa Group (ETR: LHA), reported a $10.6bn revenue loss in the first half of 2020.
The financial report of the German company showed traffic fell significantly due to the coronavirus pandemic. Sales (revenue passenger-kilometres) plunged by 65% year-on-year, while capacity (available passenger-kilometres) was cut by 61% in this period.
After laying off 8,300 employees between January and March, the H1 2020 financial statement confirmed that 22,000 more are to follow as a part of its “ReNew” program.
Air France (EPA: AF) suffered a $20.4bn YTD revenue loss. The company’s third-quarter results showed the passenger network activity was reduced to around 40% of last year’s levels. The tightening of travel restrictions, border closures, and the lack of corporate travel delayed the expected traffic recovery. July and August were relatively strong in terms of traffic compared to a disappointing September affected by restrictive travel measures.
Third-quarter revenues plunged by 68.3% to €2bn, or $2.3bn, while net income loss amounted to over €1.6bn, a €2bn decrease compared to last year.
International Airlines Group (LON: IAG), as the sixth-largest airline company globally, witnessed a $14.9bn revenue loss between January and September. The financial report of the Anglo-Spanish multinational airline holding company showed passenger capacity operated in the third quarter plunged 78.6 per cent year-on-year, and 64.3 per cent for the period of nine months.
AIG also reported an operating loss for the nine months of €3.2bn or around $3.7bn, compared to over €2.5bn operating profit a year ago.
Statistics indicate the combined revenues of the three largest European airlines crashed by $45.9bn since the beginning of the year.
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