Delta, Sun Country cut flight schedules more deeply because of coronavirus

March 18, 2020 at 11:42PM
With the Covid-19 virus spreading across the country and state, it appears that Minnesotan's are taking the restrictions and social distancing seriously. Here, the ticketing concourse at MSP airport was almost empty Wednesday afternoon.
The ticketing concourse at Minneapolis-St. Paul International Airport was almost empty Wednesday afternoon. (Star Tribune/The Minnesota Star Tribune)

Delta and Sun Country, two leading airlines at Minneapolis-St. Paul International Airport, on Wednesday announced deeper cuts to their flight schedules as more people avoid air travel to stem the spread of the new coronavirus.

Delta, the dominant carrier at the airport, said it will cut flight capacity by 70% and ground 600 planes, more than half its fleet. Last Friday, the carrier said it was aiming for a 40% reduction in flight capacity and, just a few days earlier, a 15% reduction.

Sun Country, which is based at MSP, said it will cut its capacity by 23% in April and a bit more in May.

Executives at both airlines cited the rapid decline in demand for flights.

Delta last week asked employees to take voluntary leave without pay and about 10,000 have, the company said. Senior executives are working at reduced pay, and Chief Executive Ed Bastian gave up his salary for six months.

In a note to employees Wednesday, Bastian wrote, "I know everyone is concerned about the security of your jobs and pay. In this unpredictable environment we can't take any options off the table, but any steps that would affect your jobs or pay rates would be the absolute last thing we would do, and only if necessary to secure Delta's long-term future."

Delta has about 10,000 employees in Minnesota, with MSP as its second-largest hub and maintenance base and call centers elsewhere in the state.

Bastian said the company's March revenue is expected to decline by almost $2 billion compared with last year, and April will be worse. Delta's monthly revenue averages a little less than $4 billion. Delta is also closing the majority of its airport Sky Clubs to save cash.

"Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis and protect Delta's future," Bastian said.

Sun Country is closing its Portland and Las Vegas flight-attendant bases, offering those workers the opportunity to relocate to Minneapolis-St. Paul or one of its smaller charter bases.

The airline is also asking nonunion employees to voluntarily take unpaid leave. The pilot's union, the Air Line Pilots Association, and management are working toward an agreement that would avoid furloughs.

"The impact of COVID-19 continues to be beyond what anyone in the aviation industry could've imagined a week ago," the airline said in a statement. "We are focused on making cuts where we have redundant flights in order to minimize the impact of schedule changes to customers."

As passenger traffic drops, Sun Country is gearing up to begin contract flying for Amazon Air in late April, which could provide the company some revenue.

"But even with that flying, the company needs a reduction in costs of about 40% to remain viable in the short term," the pilot union's Master Executive Council told Sun Country pilots in an e-mail Tuesday evening. "Know that we are working with the company to find a solution that does not involve furloughing pilots and that addresses the needs of our pilot group as a whole."

Kristen Leigh Painter • 612-673-4767

Delta said Wednesday it will cut its flight capacity by 70%. It also said 10,000 workers have taken unpaid voluntary leave and asked more to do so. File photo of a passenger at a Delta gate at Atlanta-Hartsfield International Airport.
Delta said Wednesday it will cut its flight capacity by 70%. It also said 10,000 workers have taken unpaid voluntary leave and asked more to do so. File photo of a passenger at a Delta gate at Atlanta-Hartsfield International Airport. (The Minnesota Star Tribune)
Ed Bastian, Delta Air Line's new CEO. ] GLEN STUBBE * gstubbe@startribune.com Wednesday, May 4, 2016 Ed Bastian officially took over as Delta Air Line's new CEO on Monday and is touring the major hubs to connect with the local employee and customer base. Bastian will sit down 1:1 with the Star Tribune Wednesday to discuss his goals and how that may impact the company's future at MSP.
Bastian (The Minnesota Star Tribune)

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Kristen Leigh Painter

Deputy Business Editor

Kristen Leigh Painter is deputy business editor.

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