Delta to ground half its fleet as it winds down majority of its operation
Delta Air Lines will ground more than 600 aircraft in its latest round of cuts that will see the carrier flying less than third of its expected schedule as the coronavirus crisis worsens.
The SkyTeam Alliance carrier will cut system capacity by 70%, with international reduced by more than 80%, over the next several months. Delta CEO Ed Bastian detailed the moves in a Wednesday memo to employees that was titled "Protecting Delta's Future."
"Following the national emergency that was declared by the U.S. president, demand for travel has dropped significantly," said Bastian. "Revenue for the month of March is now expected to decline by almost $2 billion over last year, with our projection for April falling even more."
Get Coronavirus travel updates. Stay on top of industry impacts, flight cancellations, and more.
As part of the reductions, Delta will park more than 600 aircraft from its active fleet that stood at 1,340 jets — including those operated by regional affiliates — at the end of December. This will include the early retirement of its remaining McDonnell Douglas MD-88s and MD-90s, as well as some Boeing 767s.
Delta's cuts represent what is essentially a wind down of one of the largest airlines on the globe. The carrier will consolidate operations at its Atlanta base — currently the largest hub in the world — and at other airports. It also will shutter many of its premium lounges globally.
And, in a testament to how fast fears of COVID-19 are impacting airlines, Delta planned what was then an "unprecedented" 40% system capacity reduction just five days ago.
Related: Delta slashes capacity, parks up to 300 jets amid 'unprecedented' coronavirus impact
No U.S. carrier has pulled down capacity as much as the latest plan from Delta calls for. American Airlines has cut international capacity by 75% and domestic by up to 30%, though many expect it to make further reductions. And United Airlines has reduced system capacity by 60%.
TPG understands that, even with the latest cuts, demand for air travel continues to fall faster than the U.S. carriers' capacity reductions.
On Monday, Airlines for America (A4A), the industry organization representing U.S. carriers in Washington, asked the government for at least $50 billion in aid to get the industry through the crisis. President Donald Trump has, in comments since, indicated that the government will provide financial support to airlines.
Related: US airlines seek at least $50 billion in aid to combat coronavirus crisis
"[We] remain optimistic that our industry will receive support to help address this crisis," said Bastian Wednesday. "That said, we have to continue to take all necessary self-help measures. Cash preservation remains our top financial priority right now."
Delta has already taken a number of moves to preserve cash. The airline has stopped new aircraft deliveries and nearly all capital investments, Bastian has foregone his salary, and more than 10,000 of its roughly 91,000 employees have take voluntary unpaid leave.
The International Air Transport Association (IATA) has called on global governments to support airlines through the current cash crunch. The organization warns that more and three-quarters of airlines globally do not have enough cash to last three months.
Already, the coronavirus crisis has forced UK regional carrier Flybe to shut its doors, and United affiliate Trans States Airlines to accelerate its closure by eight months to April 1.
Related: Trans States Airlines to shut down April 1, first US carrier to close amid coronavirus crisis
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees