Delta has slashed third quarter expense target by 50% compared to the past year quarter while the daily cash burn rate dropped to almost $27 million. Although the passenger airline expects the September system capacity to drop by 60% from the past year period, the capacity rate improved significantly when compared to the second quarter this year. The company has also parked almost 40% of its mainline fleet. Moreover, U.S. Global Investors stated that airline industry passengers have reached 807K level early this month. The report also suggests investors buy the airline stocks before the full recovery. Delta Air Lines stock price is currently trading around $33, down almost by half when compared to a 52-week high of $62 a share. The airlines are likely to get more support from the US government. President Trump has recently said that the government is planning to provide more support to the passenger airlines. “We’ll be helping the airlines, you have to help the airlines, it’s a tough business always is. Airlines are a tough business in good times and we are about ready to get back to good times,” stated Trump to the press today.
