Delta Air Lines among Top BEACH Stocks Losers in Q2 2020 After 88% Revenue Drop and $5.7B Loss

According to the research data analyzed and published by ForexSchoolOnline.com, Delta Air Lines’ revenue dropped by 88%. It led to a pre-tax loss of $7.01 billion and a GAAP net loss of $5.7 billion.

Passenger revenue plummeted by 94% to $678 million while cargo revenue dropped by 42% to $108 million. For H1 2020, there was a drop of 56% in operating revenue with passenger revenue shedding 60% YoY as it went from $20.62 billion to $8.25 billion. The total operating loss for H1 2020 was $8.37 billion and there was a loss per share of $9.83.

Global Air Travel Drops by 95%, Industry to Lose $84.3B in 2020

According to Flightradar 24, global daily commercial flights dropped from 100,000 to 23,923. In April 2020, there was a year-on-year (YoY) drop of 73.6% in commercial flights, slightly improving to -71.7% in May 2020.

Research from the International Air Transport Association (IATA) echoes a similar sentiment, noting a -95% drop YoY in global air travel in April 2020. It predicted that passenger numbers would halve to 2.25 billion compared to 2019. Similarly, passenger revenue would drop from $612 billion in 2019 to $241 billion in 2020. With airlines losing a cumulative $230 million daily, airlines would see a total loss of $84.3 billion. Asia Pacific will lead the industry’s losses with -$29.0 billion while North America will take the second spot with -$23.1 billion.

Booking, Entertainment, Airlines, Cruises/Casinos and Hotels/Resorts (BEACH) stocks are among the worst losers during the pandemic period. According to data from the Visual Capitalist, between February 19 and March 24, 2020, El Dorado Resorts was the highest loser. It lost 76% in market capitalization during the period while Norwegian Cruise Lines lost 72%. Overall, BEACH stock lost over $332 billion during this one-month period.

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