The airline is carrying about 5% of its normal passenger loads, Bastian told CNBC in an interview, as demand for air travel has nearly disappeared because of the virus and measures to stop it from spreading such as stay-at-home orders.
Delta is slashing costs by parking planes, freezing hiring and asking thousands of employees to take unpaid leave as revenue falls. Sales in the second quarter will likely be 90% less than expected, Delta said in a earnings release.
Bastian warned employees that the airline will be smaller because of what's expected to be a slow recovery. "We are confident that people will begin to travel again," he told employees in a memo. "We don't know when it will happen, but we do know that Delta will be a smaller airline for some time, and we should be prepared for a choppy, sluggish recovery even after the virus is contained. I estimate the recovery period could take two to three years.
CEO Oscar Munoz and its president, Scott Kirby, who takes the helm next month, told employees on April 15 that "we expect demand to remain suppressed for the remainder of 2020 and likely into next year."
Premature projection.
I won’t get on a plane till I have been vaccinated. I am sure most people don’t believe it’s worth risking your life. I think they should shut down all but essential flights until then. Lay everyone off and go on unemployment mothball the planes. All they do is spread the virus.
I don't think so. I would think the revenue would never go back. I know I don't have to travel that many I used to. My travel will be at most 1/2 post virus.
This Will be over when the fake economy by the real economy the spread of fears by companies like Microsoft Netflix Google and Amazon it’s unbelievable
How will they recover, if there are no flights? 🤔
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Source: CNBC - 🏆 12. / 72 Read more »