In a letter to employees today, Delta Air Lines CEO Ed Bastian revealed that the carrier is carrying nearly 94% fewer passengers than a year ago and losing $60 million per day. (In contrast United Airlines has publicly estimated they are losing $100 million a day)
In the letter Bastian also reveals:
- April’s Delta schedule has been reduced by 80%.
- They’ve cancelled 115,000 flights for April.
- They expect second quarter revenue to be down 90%.
- They’ve submitted their application for a government bailout.
- 30,000 employees (about a third of their workforce) has taken unpaid leaves.
- Those “merit and hourly ground-based employees” still working are taking a 25% reduction in hours.
- Net promoter score for reservations agents is up 11 points year-over-year (which I think says that people feel badly cancelling, and feel badly for airline workers)
- 450 of the 600 planes that are being parked have already been sent to storage.
While Bastian doesn’t say so explicitly, the work they’ve done to reduce their payroll means that the payroll grants they receive from the government could be more than they’ll actually spend on wages. The airline commits not to furlough workers through September if they take these grants, and not to furlough more than 10% of workers if they take government loans.