Delta Air Lines, Inc. is burning $50 million each day and to reduce that cost, the airline has decided to retire B777 aircraft from its fleet. Delta said it has refunded more than $1.2 billion in customer fares since the pandemic began, including $160 million payments so far this month.
"The board of directors on May 13, 2020 authorized a plan to retire our Boeing 777 aircraft and remove them from service by the end of 2020," the company said in a filing with the Securities and Exchange Commission. "We also previously determined to accelerate the retirement of our MD-90 aircraft, which will exit the fleet effective June 2020.”
"These decisions are intended to better align our network with lower passenger demand stemming from the COVID-19 pandemic, streamline and modernize our fleet, and generate cost savings," the company said.
IATA has warned that, even as countries around the world lift travel restrictions as coronavirus case numbers subside, demand is likely to remain subdued for several months and the industry faces a $314 billion hit to revenues that could cost some 25 million industry-related jobs.