September 22, 2020

Delta Will Offer Buyouts As It Cuts Flights and Staff

Delta has been planning to cut its schedule by 4 percent starting in September. In a hotline message to employees on Friday, Richard Anderson, the chief executive, said Delta needed to reduce the costs that went with those flights, too.

“In order for our business to thrive we must think of the current high fuel prices as a permanent reality of our business,” Mr. Anderson said.

He said Delta workers whose age plus 10 years of service equaled 55 would be eligible for early retirement. Buyouts will be available for workers who don’t meet the requirements for early retirement but have at least five years with Delta. Both are voluntary.

In October, Delta said it would add 1,000 flight attendants, including recalling 425 who had been on a voluntary furlough. A Delta spokeswoman, Keyra Johnson, said that hiring was mostly finished and was not affected by the new voluntary offers.

Airlines have been raising fares to cope with higher fuel prices, and many have been scrapping growth plans they had for this year. Delta is adding flights during the first half of the year. Airlines generally reduce flights in the fall because leisure travel drops off. Delta’s reduction beginning after Labor Day will be 4 percent below its service levels at the same time last year. Delta said last month it would park 140 planes over the next year and a half, 20 more than it originally planned. The planes coming out of its fleet will include some of its largest jets, used for international flights.

Stock in Delta, which is based in Atlanta, fell a penny, to $11.21 a share.

Article source: http://feeds.nytimes.com/click.phdo?i=8964ab0cb733c6a9ae7347ccd143da63

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