Major US carrier Delta Air Lines has announced significant capacity reductions for the June quarter as part of efforts to address coronavirus (Covid-19) challenges.
The carrier’s total system capacity is expected to be reduced by 85%, including domestic capacity by 80% and international by 90%.
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In its financial results for the March quarter 2020, Delta reported its revenue decreased by 18% compared with last year.
The company had $6.0bn in unrestricted liquidity at the end of the March quarter.
Delta chief executive officer Ed Bastian said: “These are truly unprecedented times for all of us, including the airline industry. Government travel restrictions and stay-at-home orders have been effective in slowing the spread of the virus but have also severely impacted near-term demand for air travel, reducing our expected June quarter revenues by 90%, compared to a year ago.
“Delta is taking decisive action to prioritise the safety of our employees and customers while protecting our business and bolstering liquidity.”
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By GlobalDataLast month, the company decided to ground nearly 600 aircraft as passenger operations have collapsed globally due to the pandemic.
Delta also anticipates a reduction in June quarter total expenses by approximately 50% or $5bn, compared to the previous year.
It also offered voluntary leave options with 37,000 employees taking short-term unpaid leave.
Delta chief financial officer Paul Jacobson said: “With the significant impact of Covid-19 on Delta’s revenue, we were burning $100m per day at the end of March. Through our decisive actions, we expect that cash burn to moderate to approximately $50m per day by the end of the June quarter.”
