Delta Air Lines Reduces Capacity During Coronavirus Pandemic & CEO Takes A Huge Pay Cut

Since the coronavirus was identified as a global pandemic on Wednesday, people from every industry and background have taken financial hits. The latest company to experience the fall-out is Delta Air Lines, which is now expecting the largest capacity reduction in the airline’s 95-year history.

According to a memo from the CEO, Ed Bastian, Delta is seeing more cancellations than bookings. Given the growing number of coronavirus cases and the U.S. travel restrictions to Europe, which were extended to the U.K. and Ireland on Saturday, the company expects this trend to continue throughout March. Delta is now taking measures to “preserve cash and protect our company,” which will include parking up to 300 aircraft and implementing a hiring freeze. Bastian also said that he will forego 100% of his salary for the next six months.

In the same statement, Bastian said that the company would be taking even more steps to ensure that Delta’s airplanes and facilities are kept clean and disinfected. “This is a severe crisis,” he said.

Reuters reported that Delta, along with American Airlines and United Airlines, is in talks to receive financial assistance from the U.S. government. Other airlines are experiencing the same blow as Delta: while Delta is reducing its capacity by 40%, American is reducing it by 34%. Lufthansa is considering a halt on operations entirely.

In the U.S. alone, the virus has reached 49 states. As of Saturday, at least 21,000 schools have closed across the country. People around the world are facing pressures to stay home and avoid places with large crowds which means, more than ever, travelers are canceling flights.