Delta Airlines has announced that it will continue to
make significant capacity reductions as demand for air travel
continues to plummet.
The airline is expected to make a 70 percent
systemwide pullback, until demand starts to recover.
Delta's international operations will take the
largest hit, with over 80 percent of flying to be reduced over the next
two to three months.
The airline is also looking to cut costs and
secure more than $4 billion in cash savings in the June quarter
alone. To achieve this, the airline will:
- Temporarily consolidate airport facilities
in Atlanta and other locations as necessary and close the majority
of Delta Sky Clubs until demand recovers;
- Reduce active fleet size by parking at least
half of the fleet – more than 600 aircraft;
- Accelerating the retirement of older aircraft
like MD-88/90s and some Boeing 767s;
- Reduce any maintenance spend that is not
necessary to support the safety of our operation; and
- Reduce most contractor spend, except where
needed to support operations.
- Roughly 10,000 staff have volunteered to take
leave and the airline is urging more to do so.
In a letter to employees, Ed Bastian, CEO of
Delta Airlines, said, "Be aware that if your doctor advises you
to stay home because you may have been exposed to COVID19, you
will be paid and won't have to deduct that time from your PPT
bank... I know everyone is concerned about the security of your
jobs and pay. Given the uncertainty about the duration of this
crisis, we are not yet at a point to make any decisions. And those
are very painful decisions to even consider. But know that my No.
1 priority is taking the very best care of all of you. In this
unpredictable environment we can't take any options off the table,
but any steps that would affect your jobs or pay rates would be
the absolute last thing we would do, and only if necessary to
secure Delta's long-term future."
Mr. Bastian is expected to announce further
updates later this week.