Delta to Ground Half Its Fleet as Coronavirus Slump Worsens
Delta Air Lines (NYSE: DAL) said Wednesday it would ground at least half its fleet -- more than 600 aircraft -- as part of a plan to secure more than $4 billion in cash savings in the June quarter.
Airlines including Delta have been hit by a dramatic decline in travel volume due to the COVID-19 coronavirus pandemic, and with the global industry expected to take a revenue hit of more than $100 billion for the year the individual companies are trimming schedules, freezing hiring, and looking or other ways to cut costs.
In a memo to employees Wednesday, CEO Ed Bastian said the company will park at least half of its aircraft and accelerate the retirement of some older planes, while reducing contractor spending and consolidating airport facilities at its large hub airports. Bastian has already cut his base salary to zero for at least the next six months but said the board will also forgo compensation and all Delta officers will take a 50% pay cut through June 30.
Source Fool.com
