'We will get through this,' Delta chief vows

Steve Creedy

By Steve Creedy Thu Mar 19, 2020

Delta Air Lines will park more than 600 aircraft — at least half its fleet — and accelerate the retirement of older aircraft as it rips out 70 percent of its systemwide capacity due to COVID-19. The US carrier’s international flying will take the biggest hit with more than 80 percent of flying reduced over the next two to three months as it looks to secure more than $US4 billion in cash savings in the June quarter alone. Revenue for March is expected to be down $US2 billion and the airline already has about 10,000 people taking voluntary leave with calls out for more to join them. READ: Qantas and Jetstar suspend international flights, slash workforce. It also consolidating airport facilities, closing the majority of its Delta Sky Clubs until demand recovers, and it has cut spending on contractors and deferred nearly all capital spending, including the delivery of new aircraft.
It has yet to furlough staff but says it can’t take any options off the table. “Cash preservation remains our top financial priority right now,’’ Delta chief executive Ed Bastian said in a memo to employees. “Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis and protect Delta's future.” Delta is joining carriers worldwide in making tough decisions to make sure they are part of what is likely to be a significantly different aviation landscape when the coronavirus crisis ends. The two major carriers in Australia are among a number of airlines to can nearly all international flying in response to plummeting demand and government restrictions.
But Bastian is confident his airline will be among those left standing when the crisis is over. “Make no mistake – we will get through this,’’ he told staff. “This is a temporary health crisis and an end will, hopefully soon, be in sight. “Never underestimate the power of travel as an essential service to our world. “All of our work over the past decade to fortify our company and transform our business model will serve us well in the weeks and months ahead, as we endure and, eventually, recover.”

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