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Delta Airlines takes 40 percent capacity cut

Aviation Updates Philippines – Legacy US airline Delta has taken a massive step in dealing with the Coronavirus Disease 2019 (COVID-19) outbreak as it plans to cut its overall capacity by almost half while grounding hundreds of its aircraft. The unprecedented capacity-cut comes after US President Donald Trump restricted flights between the US and Europe (excluding the UK).
MASSIVE CAPACITY CUT. To preserve cash, Delta Air Lines is offering a voluntary unpaid leave scheme for its employees. The airline is expected to cut capacity by around 40 percent in the coming months. Photo from Airbus.
According to a report from The Points Guy, Delta Chief Executive Officer Ed Bastian, in a letter to its employees, said that the airline plans to gradually reduce domestic and international flights from the United States by 40 percent in the coming months.

The airline's chief also said that Delta will ground around 300 aircraft on its fleet as they continue to cope with the decreasing demand for travel globally. Mr. Bastian, who estimated only a 15 percent capacity cut days before, now calls it “the largest capacity reduction in Delta’s history, including 2001.”

Aside from the reduced number of flights, Delta is also offering a voluntary unpaid leave scheme for its employees. The Atlanta-based airline is also implementing a hiring freeze in a bid to curb costs and alleviate the industry's financial struggle.

Delta continues to enforce stringent cost-saving measures to preserve cash. According to Fox News, Delta, which had already cut its capital investment by at least $2 billion, has been in talks with the White House and the US Congress for "financial relief".

Mr. Bastian told Fox News: "In [the] coming days and weeks, every one of us will have an opportunity to contribute to Delta's durability."

He added: "That ranges from considering a voluntary leave that works for you and your family, to identifying opportunities to save money in your division or department, to volunteering for the Peace Corps to help our customers and colleagues at the airport. I ask all of you to see what you can do to help us save cash."

With reports from Fox News and The Points Guy

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