Delta Air Lines reported (14-Sep-2020) continued reductions in capacity due to the impacts of COVID-19, with system capacity down approximately 60% year-on-year in 3Q2020. Key highlights include:
- International capacity during the quarter is expected to fall approximately 80%, while domestic capacity is to fall approximately 50%.
- As a result of reduced demand and lower capacity, Delta has parked approximately 40% of its mainline fleet, including the permanent retirement of certain aircraft.
- Negative impacts of lowered demand for air travel have also affected the performance of the SkyMiles loyalty programme, with total miles redeemed in 1H2020 down by 78%.
- Loyalty travel award revenue has also declined 59%. Cash from sales to American Express has declined less than 5% to USD1.9 billion, due to SkyMiles members continuing to utilise co brand cards.
Additionally, Delta stated it will not participate in the offer of USD25 billion in secured loans to the airline industry under the CARES Act, for which it is eligible to receive USD4.6 billion. [more - original PR]