Delta Air Lines to remove 400 aircraft from nine different models from the fleet

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Delta Air Lines released on Tuesday (13), the financial results for the quarter ended in September 2020, presenting a billion dollar loss and somewhat surprising news, referring to a reduction of about 30% in its fleet in a 5-year period – the percentage was calculated on the company’s own fleet, regional companies and deliveries originally planned for the coming years.

“Although our results for the September quarter demonstrate the magnitude of the pandemic in our business, we have been encouraged as more customers travel and we are seeing a path of progressive improvement in our revenues, financial results and daily cash consumption,” said Ed Bastian , Executive Director of Delta. “The actions we are taking now to take care of our people, simplify our fleet, improve the customer experience and strengthen our brand will allow Delta to accelerate towards a post-COVID recovery.”

Financial results

The company reported an adjusted pre-tax loss of $ 2.6 billion, which excludes $ 4.0 billion of shares directly related to the impact of COVID-19 and the company’s response, including fleet restructuring expenses and expenses for voluntary retirement and retirement programs, which were partially offset by the CARES Law grant recognized in the quarter.

Meanwhile, total adjusted revenue of $ 2.6 billion was 79 percent lower than the same period last year, while capacity was 63 percent lower. Even so, at the end of the quarter, the company had $ 21.6 billion in immediate liquidity (cash and loans).

Basis for recovery

Delta took a series of actions to position the company to accelerate towards a post-COVID recovery:

Taking good care of the Delta people

– Through voluntary termination and early retirement programs, unpaid voluntary leave, division of employment and other initiatives, the company has been able to avoid involuntary leave from ground workers and flight attendants.

– Launching a “Stop the Spread, Save Lives” campaign to emphasize the six main health actions that protect Delta employees from COVID-19, including wearing masks, social detachment, testing and getting a flu shot. Delta is providing free COVID-19 testing and flu vaccines to its employees in the U.S.


Improve the customer experience

– Emphasizing health and safety with Delta CareStandard, a multi-layered approach that includes intense cleaning protocols, blocking intermediate seats and requiring masks on board all aircraft.

– Reducing complexity for customers, eliminating change fees for almost all domestic tariffs.

– Adopting a customer-centric approach to refunds, with approximately $ 2.8 billion returned in the year to date.

Simplifying the fleet

– Restructuring its Airbus and CRJ aircraft order portfolios to better match aircraft delivery times with the network and financial needs in the coming years. The restructuring reduces aircraft purchase commitments by more than $ 2 billion in 2020 and by more than $ 5 billion by 2022

– Accelerate the fleet simplification strategy, which aims to modernize and streamline the company’s fleet, improve the customer experience and generate cost savings. The company announced plans to accelerate the retirement of almost 400 aircraft by 2025, including more than 200 in 2020. That figure refers to 30% of the total aircraft, including the regional companies that service it.

Check the list below for the 9 models that will be removed or reduced.

In summary, in the next five years we should see a Delta Air Lines very different from what it is today, with fewer aircraft models and more lean. The only salvation for such an impact would be a rapid recovery in “V” of the economy and the travel market, which, for now, the projections are not showing.


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