Delta Air Lines Avoids Pilot Furloughs
A month ago, Delta Air Lines (NYSE: DAL) reached a tentative agreement with its pilot union -- the Air Line Pilots Association (ALPA) -- to avoid pilot furloughs. The deal offered partial pay for more than 1,700 pilots who would have been furloughed, in exchange for a modest reduction in the number of guaranteed hours for the rest of Delta's pilots.
Last week, ALPA announced that Delta's pilots had ratified the agreement. This is great news for both the company and its pilots. Let's see why.
While the U.S. airline industry is past the worst part of the COVID-19 pandemic, demand is recovering very slowly. Passenger throughput at TSA checkpoints remains well below 50% of year-ago levels. As a result, airlines like Delta have had to shrink quite dramatically. Back in October, Delta estimated that it would reduce capacity 40% year over year in the fourth quarter.
Source Fool.com
