DAL Delta Air Lines Inc

By Maria Armental

Delta Air Lines Inc. will further cut travel, parking at least half of its fleet, as it seeks to save about $4 billion in the June quarter, the company said Wednesday.

The airline, which estimates revenue for March would drop by almost $2 billion from last year and by a larger amount in April, said it would slash capacity by 70% until demand starts to recover. International travel will be cut by more than 80% over the next two to three months, Chief Executive Ed Bastian wrote in a memo to employees under the subject line "PROTECTING DELTA'S FUTURE."

"We are having constructive discussions with the White House and Congress, and remain optimistic that our industry will receive support to help address this crisis," Mr. Bastian wrote. "That said, we have to continue to take all necessary self-help measures. Cash preservation remains our top financial priority right now."

To help stem the cash burn, Delta is putting on hold nearly all capital spending, including all new aircraft deliveries, and will temporary consolidate airport facilities and accelerate retirements of older planes.

Also, all Delta officers will take a 50% pay cut through June 30 and managing directors 15%, Mr. Bastian said. Directors will forego compensation over the next six months, he said.

Mr. Bastian had already agreed to give up his pay over the next six months.

"Given the uncertainty about the duration of this crisis, we are not yet at a point to make any decisions" about layoffs, Mr. Bastian wrote. "And those are very painful decisions to even consider."

"We can't take any options off the table, but any steps that would affect your jobs or pay rates would be the absolute last thing we would do, and only if necessary to secure Delta's long-term future," the chief executive said.

For the time being, Delta asked workers to take voluntary leaves-"one of the best and most immediate ways you can help as we strive to protect jobs and pay."

Roughly 10,000 workers have taken voluntary leaves, Mr. Bastian said, adding that those workers continue to have access to health and flight benefits.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

March 18, 2020 13:55 ET (17:55 GMT)

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