Delta retiring Boeing 777s
Move reflects travel demand, which has declined 90%.
Delta Air Lines is retiring its fleet of Boeing 777s, signaling the depth of the impact on air travel from the coronavirus pandemic.
The wide-body Boeing 777s are among Delta’s largest planes and the airline has used them to fly international routes.
But now, many in the airline industry don’t expect international travel to fully recover for four years. Delta already has parked more than 650 jets, or roughly half of its fleet, as travel demand has declined more than 90%. In addition to canceling flights, many flights are mostly empty.
Atlanta-based Delta said it will permanently retire its 18 Boeing 777s by the end of the year. Instead, it will use more fuel-efficient Airbus A350-900s and A330s to fly long-haul routes when international demand returns.
“Retiring a fleet as iconic as the 777 is not an easy decision,” Delta CEO Ed Bastian wrote in a memo to employees. “The 777 played an important role with Delta since 1999, allowing us to open new long-haul markets and grow our international network as we transformed into a global airline.”
But he said the company is burning through $50 million in cash a day — including paying out $1.2 billion in refunds to customers after canceling flights — and its goal is to stop burning through cash by the end of this year. A move such as parking the 777s helps to “stem the bleeding, in an effort to safeguard Delta jobs and our future,” Bastian wrote.
In the past several weeks,
Delta has repurposed 777s to transport cargo for COVID-19 response, deliver mail to U.S. troops abroad and fly U.S. citizens back home from other countries. It’s still unclear what will happen to the planes after Delta removes them from its fleet. The airline said it will share more details later.
The move will also affect pilots, flight attendants and mechanics who work on 777s. Delta is expected to have thousands of surplus pilots as it operates a reduced flight schedule.
Bastian said more than 41,000 of the company’s 90,000 employees have agreed to take voluntary leaves of absence in response to the plunge in air travel.
Delta is also retiring smaller, aging MD-88 and MD-90 jets in June, earlier than previously planned.
The company said in a filing with the U.S. Securities and Exchange Commission that its fleet retirements will result in a non-cash charge of $1.4 billion to $1.7 billion in its financial results this quarter.
“We plan to continue to consider further opportunities for early aircraft retirements in an effort to modernize and simplify our fleet in the future,” Delta said in the filing.