Delta Airlines to Make Significant Capacity Reductions; Park Over Half of Fleet

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.

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