Delta Air Lines introduces new strategy to address 'unprecedented revenue impact' from coronavirus

Delta Air Lines CEO Ed Bastian reported (13-Mar-2020) declining demand for travel is daily occurring at an accelerated rate and is "driving an unprecedented revenue impact", due to the coronavirus outbreak. "The speed of the demand fall-off is unlike anything we've seen", he stated, noting there are now more cancellations being made than new bookings for Apr-2020. In order to address changing demands, Delta will undertake the following actions, in addition to others:

• Reduce overall capacity by 40% for the next few months;
• Nearly eliminate all service to continental Europe for the next 30 days, subject to revision;
• Park up to 300 aircraft, due to reduced capacity;
• Defer new aircraft deliveries, in order to manage reduced capacity and cash preservation;
• Reduce CapEx by at least USD2 billion for 2020, which will include the delay of aircraft modifications, IT initiatives and other opportunities;
• Offer voluntary short term, unpaid leave, effective immediately;
• Introduce immediate hiring freeze;
• Substantially reduce use of consultants and contractors;
• Cut CEO salary by 100% for next six months, effective immediately.

Mr Bastian said the carrier is "in discussions with the White House and Congress regarding the support they can provide to help us through this period. I'm optimistic we will receive their support. 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". He warned: "The situation is fluid and likely to be getting worse". [more - original PR]