Delta Ceases Flying to Continental Europe for Month Amid New Travel Restrictions

By Alison Sider

In the latest sign of mounting pressure on the airline industry, Delta Air Lines Inc. on Friday said it plans to cut flights by 40% to deal with the latest U.S. travel restrictions put in place amid the coronavirus crisis.

Delta also said it was holding discussions with the White House and Congress regarding financial support.

"I'm optimistic we will receive their support," Delta CEO Ed Bastian wrote in a letter to employees. "That said, the form and value is unpredictable, and we can't put our company's future at risk waiting on aid from our government."

Delta's reduction in capacity by 40%, which exceeds the cuts it made following Sept. 11, 2001 and is its biggest ever reduction, will include eliminating flying to continental Europe for 30 days and parking as many as 300 planes.

"The speed of the demand fall-off is unlike anything we've seen--and we've seen a lot in our business," Mr. Bastian wrote in the letter. "We'll be making more critical decisions on our response in days to come. The situation is fluid and likely to be getting worse."

Mr. Bastian said he will give up his salary for six months, joining other airline executives who have announced similar measures. The company will also freeze hiring and offer voluntary unpaid leave, and defer new plane deliveries and modifications of current aircraft. Delta plans to slash capital expenditures by $2 billion this year.

Write to Alison Sider at alison.sider@wsj.com

(END) Dow Jones Newswires

March 13, 2020 13:58 ET (17:58 GMT)

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