Delta CEO Expects Only Limited Furloughs as Talks With Pilots Continue
Delta Air Lines (NYSE: DAL) said on Tuesday it expects to avoid furloughs for all worker groups except pilots, though it warned that employees will work reduced hours through the end of the year.
Airlines expect to cut back operations substantially in October after federal payroll subsidies that were included as part of the CARES Act expire. As part of the agreement to receive payroll support, the industry agreed to no involuntary separations through Sept. 30.
With travel demand still weak due to the coronavirus pandemic, the airlines are expected to shrink substantially in the months to come. American Airlines Group (NASDAQ: AAL) expects to cut up to 40,000 jobs, and Delta has said it could have to reduce its pilot ranks by nearly 2,000.
Source Fool.com
