Delta takes the most dramatic steps of any U.S. airline so far in reaction to the coronavirus crisis, moving to cut flying by 40%, 'the largest capacity reduction in Delta’s history, including 2001,' CEO Ed Bastian said in a letter to employees.
Bastian said he will take no salary for the next six months. He said Delta is seeking assistance from the federal government.
The situation at Delta, and presumably at every airline, has deteriorated rapidly this week. Given Delta’s standing as arguably the, Bastian’s memo may be a warning sign of the extent of the trouble ahead for the rest of the industry. “Demand for travel is declining at an accelerated pace daily, driving an unprecedented revenue impact. Cancellations are rising dramatically with net bookings now negative for travel over the next four weeks. To put that in perspective, we’re currently seeing more cancellations than new bookings over the next month.
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