Delta to Park 600 Planes and Drastically Reduce Flying, Close Most Sky Clubs

By Paul Riegler on 18 March 2020
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A Delta Sky Club in San Francisco

Delta Air Lines said it plans to park at least 600 aircraft, scale back its capacity by over 70%, and reduce executive pay.

In a memorandum to employees, Ed Bastian, the airline’s CEO, said that Delta was deferring all capital expenditures including new airplane deliveries for the time being and that it was trying to “secure” over $4 billion in cash savings in the current quarter.

“Make no mistake – we will get through this,” Bastian said in the memo.

The airline will halve its fleet for the time being and accelerate the retirement of older, less fuel-efficient aircraft such as the MD-88, MD-90, and Boeing 767. In addition, it will consolidate its space in various airports and close the majority of its Sky Club lounges.

All Delta officers are taking a 50% pay cut, directors and managing directors will take a 25% cut, and the board of directors as well as the CEO will forgo any compensation for the next six months.

Earlier in the month, Delta instituted a voluntary leave program and over 10,000 employees have already expressed interest, the airline said.

The Atlanta-based airline had originally said on March 13 it would cut capacity by 40%.

(Photo: Accura Media Group)

Accura News

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