Delta CEO trying to avoid furloughs 'any way we possibly can' as airlines recover
The major US airlines have all warned the coronavirus pandemic may force them to lay off employees in order to save money, but Delta CEO Ed Bastian is hoping to avoid cutting staff at all. The airline took $5.4b from the US Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which requires Delta to maintain employee salaries and benefits through Sept. 30. “You know that the telltale sign will come October 1. That's when the restrictions around furloughs will come off and my goal, at Delta, is to avoid furloughs in any way we possibly can,” Bastian said. The air carrier employs 90,000 people. Yet almost half — more than 40,000 — have taken voluntary leave to help Delta save money during the COVID-19 crisis. Delta just launched an early retirement program, which Bastian estimates will help it streamline its workforce. The company also cut its cash burn from $100m a day before the pandemic, to $30m a day currently. It plans to add 100 flights back to its daily schedule this month as air traffic ticks up again. “You start to see how the revenue is climbing by staying very disciplined on cost, capping load factors and adding flights back as demand returns,” Bastian said. However, according to the CEO, revenue is only running at 15% of what it was a year ago as passengers start flying again. Delta plans to add around 1000 daily flights in July and August as travel demand slowly recovers. “Traffic is back. It bottomed out in April at 5%,’ he said. “I'd expect over In the next few weeks, that number is going to go to 20% and then, hopefully, eventually 30% by the end of the third quarter.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-06-19/sky/delta-ceo-trying-to-avoid-furloughs-any-way-we-possibly-can-as-airlines-recover
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Delta CEO trying to avoid furloughs 'any way we possibly can' as airlines recover
The major US airlines have all warned the coronavirus pandemic may force them to lay off employees in order to save money, but Delta CEO Ed Bastian is hoping to avoid cutting staff at all. The airline took $5.4b from the US Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which requires Delta to maintain employee salaries and benefits through Sept. 30. “You know that the telltale sign will come October 1. That's when the restrictions around furloughs will come off and my goal, at Delta, is to avoid furloughs in any way we possibly can,” Bastian said. The air carrier employs 90,000 people. Yet almost half — more than 40,000 — have taken voluntary leave to help Delta save money during the COVID-19 crisis. Delta just launched an early retirement program, which Bastian estimates will help it streamline its workforce. The company also cut its cash burn from $100m a day before the pandemic, to $30m a day currently. It plans to add 100 flights back to its daily schedule this month as air traffic ticks up again. “You start to see how the revenue is climbing by staying very disciplined on cost, capping load factors and adding flights back as demand returns,” Bastian said. However, according to the CEO, revenue is only running at 15% of what it was a year ago as passengers start flying again. Delta plans to add around 1000 daily flights in July and August as travel demand slowly recovers. “Traffic is back. It bottomed out in April at 5%,’ he said. “I'd expect over In the next few weeks, that number is going to go to 20% and then, hopefully, eventually 30% by the end of the third quarter.”<br/>
