Delta to park A320s, many 737s for length of coronavirus downturn
Delta Air Lines is taking drastic measures to weather the coronavirus pandemic downturn that CEO Ed Bastian says will take at least three years to recover from.
The Atlanta-based carrier will temporarily park all of its Airbus A320s and many of its Boeing 737-900ERs for the duration of the slowdown, Delta said in an internal load planner memo on April 24 viewed by TPG. The airline flew 62 A320s and 130 737-900ERs, of which 25 and 41 respectively were stored, at the end of March.
The news comes as Delta moves to ground some 650 jets amid the worst downturn the airline industry has ever seen. Shelter-at-home orders and fears of COVID-19, the disease caused by the coronavirus, are keeping all but people who have to travel out of the skies.
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Airport security screening numbers from the Transportation Security Administration (TSA) have hovered around the 100,000 people a day mark since April 7. While many airline executives suspect this is the bottom of the market, it represents just 5% or fewer people flying than did the same time last year.
In response to this slowdown, Delta is slashing capacity by roughly 85% during the three months ending in June. Parking 440 mainline aircraft, the balance will come from the airline's Delta Connection feeder fleet, is a corollary to these reductions.
Parking the A320s comes as little surprise. The jets are among the oldest in Delta's fleet with an average age of 24.6 years -- only its McDonnell Douglas MD-88s are older with an average age of 29 years. The airline's oldest A320, registration N309US, was manufactured in August 1990 and originally delivered to Northwest Airlines.
Related: Delta still flying all of its Airbus A220s even as the coronavirus grounds more than half its fleet
Delta executives have indicated that the airline will prune its fleet after the coronavirus to adapt to what is widely expected to be a significantly smaller industry. The MD-88s and MD-90s are the only types they have confirmed will leave the fleet entirely by year-end, with some Boeing 757s and 767s joining them.
Wall Street analysts, however, have indicated that any aircraft that is older than 20 years will be a likely candidate for retirement. This raises questions about the future of the A320 at Delta.
“Any airplane that was thought to be retried in the next five years, probably you can consider it retired this year,” Bastian told Delta staff on April 22.
Delta's move to park all of the A320s raises the question -- and one with no answer yet -- will they come back?
The airline will park 80 of its 737-900ERs, or more than 60% of the fleet. The jets are among Delta's youngest with an average age of just 3.6 years in March.
Delta's fleet plans remain fluid during the pandemic, and the jets it parks versus continues to fly could change.
Related: A smaller Delta would have to retire planes after coronavirus. What types could go?
Notably, Delta continues to fly both A320 family and 737 family jets, meaning that it can continue to schedule trips for pilots certified on either family.
Much remains up in the air about Delta's -- and other airlines' -- post-coronavirus fleets. Past downturns inform us that older, owned jets tend to go first but new aircraft deliveries are often delayed or slowed as well.
Like Delta, American Airlines has accelerated retirements of some of its oldest planes, including its 757s and 767s. The carrier also may have flown its last Embraer E190 flight though the type was due to disappear by year-end.
"We believe that it could be up to three years before we see a sustainable recovery," Bastian told investors on April 22. A long, slow recovery that will mean significant changes to come at airlines.
Related: US airlines could retire older aircraft, focus on newer models due to coronavirus downturn
Updated with Delta's decision to continue to fly roughly 50 737-900ERs.
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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
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- 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.
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- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | 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. |
| 4X | 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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended 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.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.