Delta Air Lines and American Air Lines are in talks with the U.S. government about potential assistance, the two carriers said on Friday.
Airlines are reeling from a plunge in bookings and traffic, as the
fast-spreading coronavirus pandemic prompts travel restrictions and
event cancellations around the world.
Delta CEO Ed Bastian told employees on Friday he was forgoing his entire salary this year and cutting 40% of capacity in the coming months, the largest in the airline’s history, in addition to pursuing aid.
“We are in discussions with the White House and Congress regarding the support they can provide to help us through this period,” Bastian said in a memo seen by Reuters.
American Airlines is also in discussions, a spokeswoman said.
Bastian said he was “optimistic” about receiving government support but said the “form and value is unpredictable” and the company could not put its “future at risk waiting on aid from our government.”
To preserve cash, Delta will park up to 300 aircraft, defer new aircraft deliveries and delay other investment initiatives, in addition to implementing a hiring freeze. As part of the capacity cuts, it is eliminating all flying to continental Europe for the next 30 days, or longer.
Earlier, U.S. Treasury Secretary Steven Mnuchin urged Americans to shake off worries about the coronavirus and continue to fly on domestic airline routes, while saying the administration of President Donald Trump was ready to provide needed liquidity to U.S. airlines.
“It is of strategic importance to us,” Mnuchin told reporters at the White House, adding that he was in close touch with the CEOs of U.S. airlines. The Trump administration viewed the ability of airlines to continue to fly as a top priority, he said.
“I think the airlines want to make sure that they can continue to provide domestic travel. They also want to make sure that they keep as many workers employed as they can,” he said.
“If I weren?t so busy working I would be going home to Los Angeles and I would be perfectly comfortable getting on a commercial plane this weekend. Despite the fact that we told people to shut down travel a little bit, people can travel in the domestic U.S.,” he said.
The International Air Transport Association on Friday warned that air carriers could collapse if the coronavirus crisis lasted another two or three months.
IATA CEO Alexandre de Juniac told Reuters revenue losses internationally would be “probably above” the $113 billion figure the group had forecast a week ago, before the Trump administration’s announcement of U.S. travel curbs on much of continental Europe.
European carriers were also suffering from the measures, with Norwegian Air saying on Friday it needs access to cash within weeks as it seeks to overcome the coronavirus crisis and is optimistic that the government of Norway will help secure funding.
Delta CEO Ed Bastian told employees on Friday he was forgoing his entire salary this year and cutting 40% of capacity in the coming months, the largest in the airline’s history, in addition to pursuing aid.
“We are in discussions with the White House and Congress regarding the support they can provide to help us through this period,” Bastian said in a memo seen by Reuters.
American Airlines is also in discussions, a spokeswoman said.
Bastian said he was “optimistic” about receiving government support but said the “form and value is unpredictable” and the company could not put its “future at risk waiting on aid from our government.”
To preserve cash, Delta will park up to 300 aircraft, defer new aircraft deliveries and delay other investment initiatives, in addition to implementing a hiring freeze. As part of the capacity cuts, it is eliminating all flying to continental Europe for the next 30 days, or longer.
Earlier, U.S. Treasury Secretary Steven Mnuchin urged Americans to shake off worries about the coronavirus and continue to fly on domestic airline routes, while saying the administration of President Donald Trump was ready to provide needed liquidity to U.S. airlines.
“It is of strategic importance to us,” Mnuchin told reporters at the White House, adding that he was in close touch with the CEOs of U.S. airlines. The Trump administration viewed the ability of airlines to continue to fly as a top priority, he said.
“I think the airlines want to make sure that they can continue to provide domestic travel. They also want to make sure that they keep as many workers employed as they can,” he said.
“If I weren?t so busy working I would be going home to Los Angeles and I would be perfectly comfortable getting on a commercial plane this weekend. Despite the fact that we told people to shut down travel a little bit, people can travel in the domestic U.S.,” he said.
The International Air Transport Association on Friday warned that air carriers could collapse if the coronavirus crisis lasted another two or three months.
IATA CEO Alexandre de Juniac told Reuters revenue losses internationally would be “probably above” the $113 billion figure the group had forecast a week ago, before the Trump administration’s announcement of U.S. travel curbs on much of continental Europe.
European carriers were also suffering from the measures, with Norwegian Air saying on Friday it needs access to cash within weeks as it seeks to overcome the coronavirus crisis and is optimistic that the government of Norway will help secure funding.
https://www.marketscreener.com/news/Delta-American-in-White-House-talks-to-receive-government-support–30158981/
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