ATLANTA — You’ll have fewer flights to choose from if you’re booking a vacation or business trip.
As the coronavirus continues to spread in the United States and impact the economy, Atlanta-based Delta Air Lines is cutting flights and making other changes to its operations.
Delta says it will reduce capacity by 15 points versus its plan, with international capacity reduced by 20-25 percent, and domestic capacity reduced by 10-15 percent.
“We have made the difficult, but necessary decision to immediately reduce capacity and are implementing cost reductions and cash flow initiatives across the organization," CEO Ed Bastian said.
The airline is breaking down the changes by region:
|Entity||% of Total FY19 Revenue||Capacity Reductions|
Anyone booked on a flight that is being cancelled will have options to rebook on Delta or partner airlines or, in some cases, a refund.
The company will continue to make adjustments to planned capacity as demand trends change.
Delta also announced other changes that impacts its employees. It will institute a company-wide hiring freeze and offer voluntary leave options.
The airline will also be parking aircraft and “evaluating early retirements of older aircraft.”
Delta has also made the following cash flow decisions:
- Deferring $500 million in capital expenditures
- Delaying $500 million of voluntary pension funding
- Suspending share repurchases
© 2020 Cox Media Group