Delta Ceases Flying to Continental Europe for Month Amid New Travel Restrictions
March 13 2020 - 2:13PM
Dow Jones News
By Alison Sider
In the latest sign of mounting pressure on the airline industry,
Delta Air Lines Inc. on Friday said it plans to cut flights by 40%
to deal with the latest U.S. travel restrictions put in place amid
the coronavirus crisis.
Delta also said it was holding discussions with the White House
and Congress regarding financial support.
"I'm optimistic we will receive their support," Delta CEO Ed
Bastian wrote in a letter to employees. "That said, the form and
value is unpredictable, and we can't put our company's future at
risk waiting on aid from our government."
Delta's reduction in capacity by 40%, which exceeds the cuts it
made following Sept. 11, 2001 and is its biggest ever reduction,
will include eliminating flying to continental Europe for 30 days
and parking as many as 300 planes.
"The speed of the demand fall-off is unlike anything we've
seen--and we've seen a lot in our business," Mr. Bastian wrote in
the letter. "We'll be making more critical decisions on our
response in days to come. The situation is fluid and likely to be
getting worse."
Mr. Bastian said he will give up his salary for six months,
joining other airline executives who have announced similar
measures. The company will also freeze hiring and offer voluntary
unpaid leave, and defer new plane deliveries and modifications of
current aircraft. Delta plans to slash capital expenditures by $2
billion this year.
Write to Alison Sider at alison.sider@wsj.com
(END) Dow Jones Newswires
March 13, 2020 13:58 ET (17:58 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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