Delta Air Lines to reduce systemwide capacity by 70%, introduce stricter cost savings

Delta Air Lines CEO Ed Bastian stated (18-Mar-2020) the airline plans to reduce systemwide capacity by 70% until demand sufficiently recovers, including an 80% reduction in international services during the next two to three months. These capacity reductions come as revenue for Mar-2020 "is now expected to decline by almost USD2 billion" year-on-year, he noted, "with our projection for April falling even more". He noted the carrier is in "constructive discussions with the White House and Congress", but will nevertheless introduce the following measures to reduce costs:

• Defer nearly all capital spending, including all new aircraft deliveries;
• Secure more than USD4 billion in cash savings for 2Q2020;
• Introduce 50% pay cut for all officers until 30-Jun-2020, with directors and MDs to take a 25% pay cut;
• Waiver compensation for board of directors for next six months;
• Temporarily consolidate airport facilities in Atlanta and other locations;
• Close majority of Delta Sky Clubs;
• Reduce active fleet by parking more than 600 aircraft, at least half of Delta's fleet;
• Accelerate retirements of older aircraft, such as MD-88s, MD-90s and some Boeing 767s;
• Reduce maintenance spend that is not necessary for safety;
• Reduce most contract spend. [more - original PR]