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Delta CEO reassures staff as it shrinks operations, cuts hours

March 25, 2020
3 min read
Airlines Park Planes In Southern California Due To Coronavirus Slowdown
Delta CEO reassures staff as it shrinks operations, cuts hours
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Delta Air Lines CEO Ed Bastian reassured employees Wednesday that the carrier is in the midst what feels like a "war" to weather the sudden storm caused by the novel coronavirus pandemic.

The Atlanta-based carrier, which already warned last week that it will emerge from the crisis as a smaller airline, faces rapidly declining demand and a resulting cash crunch as passengers cancel existing bookings and shy away from new ones.

But Bastian told employees in a webinar viewed by TPG that the company will get through it.

“The coronavirus is a challenge that is clearly the biggest challenge this company has ever faced in our history," he said. "It feels like a war that is at hand.”

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Delta jets are parked in Victorville, California, as part of its plan to temporarily remove more than 600 aircraft amid plummeting demand from the coronavirus pandemic. (Photo by David McNew/Getty Images)

Delta is slashing capacity by 70% and as a result it is consolidating facilities at airports around the country. At its Atlanta (ATL) hub, the largest in the world, it is "minimizing use" of Concourses C, D and E — a move that will shrink it to roughly its 1980s footprint at the airport.

The Atlanta airport has even closed its southern runway, 10/28, to accommodate parked Delta jets.

Delta is also closing Terminal 3 in Los Angeles (LAX), Terminal 2 at New York John F. Kennedy (JFK), and parts of Terminal D at New York LaGuardia (LGA) amid facility adjustments across its network.

Related: Delta to emerge a much ‘smaller’ airline from coronavirus crisis

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Airline employees are now being asked to reduce their hours – and pay -- to help cut expenses. Ground staff must reduce their workweeks to three or four days, a move that will reduce payroll by as much as a quarter over the next 90 days.

Bastian, in a memo to staff on Tuesday, called the cuts “a meaningful contribution to the crisis at hand, and I thank you for making these sacrifices to protect Delta.”

“These are all temporary measures, but provide us significant savings during this difficult period,” he added.

Aid is on the way. Legislators in Washington have reportedly hammered out a deal for $50 billion in direct aid to carriers, split evenly between grants to fund employee compensation, and loans to maintain operations.

Delta expects to receive between $5 billion and $10 billion from the package after it is passed, Bastian said Wednesday.

Featured image by Getty Images

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Apply for American Express® Gold Card
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4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.