Delta Air Lines: reduces capacity in response to coronavirus
(CercleFinance.com) - Delta Air Lines announced on Tuesday that it has decided to reduce its capacities by 15% faced with weak demand due to the coronavirus epidemic.
In a press release, the Atlanta-based airline said it plans to reduce its international offer by between 20% and 25% and decrease the frequency of its domestic flights by between 10% and 15%.
Delta also says it wants to implement a set of measures aimed at reducing its costs, which will include freezing recruitment, the implementation of a voluntary departure program and the withrawal of aircraft that are deemed to be aging.
Finally, the carrier plans to defer some 500 million dollars of investments initially planned, while suspending share buybacks.
On a positive note, the recent collapse of oil prices should save it nearly two billion dollars in fuel costs a year.
The company's share is up almost 3% as the New York Stock Exchange opens in the wake of these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
In a press release, the Atlanta-based airline said it plans to reduce its international offer by between 20% and 25% and decrease the frequency of its domestic flights by between 10% and 15%.
Delta also says it wants to implement a set of measures aimed at reducing its costs, which will include freezing recruitment, the implementation of a voluntary departure program and the withrawal of aircraft that are deemed to be aging.
Finally, the carrier plans to defer some 500 million dollars of investments initially planned, while suspending share buybacks.
On a positive note, the recent collapse of oil prices should save it nearly two billion dollars in fuel costs a year.
The company's share is up almost 3% as the New York Stock Exchange opens in the wake of these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.