Delta sees quarterly revenue dropping 90%

Delta Air Lines sees a bumpy landing for the second quarter. It warned Wednesday that revenue would plummet 90%. It also said it needs to renegotiate its debt agreements so it could avoid defaulting next year.

With demand down as people stayed at home, the carrier said its systemwide capacity, or airline seats available, had plunged 85% compared to last year's June quarter.

The company expects to end the year with $10 billion in cash. The airline has received nearly $4 billion dollars in government aid that requires it to keep workers on the payroll until September 30.

Delta Air Lines' CEO Ed Bastian has said the airline plans to increase capacity this summer by adding flights in June and July as U.S. domestic travel slowly picks up. The capacity bets airlines recently announced has fueled a sharp rebound in their hard-hit stock prices.

But shares of Delta and those of other airlines shed some of those gains Wednesday morning after J.P. Morgan said airline stocks won't be able to sustain their rally for much longer.