Shrinking American and Delta outline initial coronavirus staff cut plans
American Airlines and Delta Air Lines are beginning the process of shrinking their workforces as they prepare to be smaller airlines after the coronavirus pandemic.
Fort Worth, Texas-based American aims to reduce its management staff by 30% -- or by about 5,000 people -- said executive vice president for people and communications Elise Eberwein in a memo to staff on Wednesday.
There was a similar announcement at Atlanta-based Delta. CEO Ed Bastian asked those who can go voluntarily to take early out offers in order to avoid involuntary furloughs and layoffs come October, he said in his own memo to staff on the same day. He did not put a number to how many people need to leave.
Get Coronavirus travel updates. Stay on top of industry impacts, flight cancellations, and more.

"I'm often asked for specifics about how small Delta will need to be over the next couple of years," said Bastian. "The fact is, right now we simply don't know."
Staff at U.S. airlines are protected from involuntary furloughs and layoffs through Sept. 30 under the conditions of the federal government's $2 trillion coronavirus aid package, known as the CARES Act.
Both American and Delta are operating a fraction of the flights they flew last year. In June, American will fly about a third of the number of flights it flew in 2019 and Delta will fly about 23% of the flights if flew a year ago, according to Cirium schedules.
Related: No major US airline is likely to fail during coronavirus pandemic, says American CEO
Both airlines are adding flights back as travelers begin to trickle back onto planes. However, Wall Street analysts estimate that they could be anywhere from 30% to 50% smaller at the end of December than they were at the end of 2019.
"What I think you're going to see is, in the summer of 2021, the collective U.S. airline business 10 to 20 percent smaller than in 2019," said American CEO Doug Parker at the Bernstein Strategic Decisions conference on May 27.
How the staff cuts will impact travelers is unknown. Already, United Airlines has outlined plans to reduce flight attendant staffing on some flights, dropping to the minimum required by regulators, citing a need to control costs. This could impact onboard service quality if a flight is full.
Related: State-by-state guide to coronavirus reopening
In addition, smaller airlines could mean fewer long nonstop routes -- for example between Washington Dulles (IAD) and Sacramento (SMF) on United -- requiring travelers to change planes somewhere enroute.
American and Delta are not just cutting staff. The airlines have accelerated the retirement of more than 200 aircraft from their fleets, including four mainline types at American and three types at Delta. These moves are expected to save both airlines significant expenses.
At the same time, American could resume deliveries of new Boeing 787s and Delta of new Airbus A220s by year-end. Both jets feature some the airlines' latest onboard offerings for travelers, while at the same time being more efficient to operate.
Related: How will airlines rebuild their route maps after the coronavirus?
TPG featured card
Rewards
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month
Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month

