Delta, American Airlines Signal Major Capacity Cuts

Delta and American Airlines on Tuesday said they would cut international seating capacity by as much as 25 percent and 10 percent, respectively, as both airlines address reduced passenger demand related to the spread of the Covid-19 virus. The cuts rival those announced less than a week earlier by United Airlines, which said it would slash international capacity by 20 percent.  

Delta’s plan calls for an overall capacity cut of 15 points, including a 10- to 15 percent reduction in domestic flying, a 65-percent cut in Pacific capacity, a 15- to 20 percent drop in transatlantic service, and a 5-percent reduction in capacity to Latin America.

So far Delta has suspended all service to China through April 30 and drastically cut flying to South Korea through May 31 and Japan through April 30. It has also suspended all service between New York-JFK and Milan Malpensa through May 20 as well as all service between Atlanta and Rome through April 30. It continues to fly to Rome through JFK.

Cost-cutting initiatives at the Atlanta-based airline include a company-wide hiring freeze and an offer of voluntary leave options. It also has decided to defer $500 million in capital expenditures, delay $500 million of voluntary pension funding, and suspend plans for share repurchases.   

At American, capacity cuts include a 55-percent reduction in trans-Pacific flying and a 7.5-percent reduction in domestic flying. The airline said the level of capacity reductions in specific markets depends on the existence of slot waivers. Given the loss of demand related to the coronavirus, American has asked for temporary relief from a rule that requires airlines to maintain a certain level of usage to keep their slots.

American’s updated Pacific schedule shows a suspension of flying from Dallas-Fort Worth to Beijing and Shanghai through October 23. From Los Angeles International, it has suspended all service to Beijing, Shanghai, and Hong Kong until the same date. It has scheduled a resumption of suspended service to Seoul from DFW on May 2. More schedule changes have seen a reduction in service to both of Tokyo’s international airports from both DFW and LAX as well as a cut in American frequency between Sydney, Australia, and LAX.

Elsewhere, more service suspensions at American include Milan, Barcelona, Rome, Madrid, and Santiago, Chile.