Delta to extend caps on passenger numbers

STOCKS NEWS – The boss of Delta Airlines says the carrier will continue to limit the number of people on its planes beyond September.

So far the airline has been capping the numbers on board its flights to no more than 60% of capacity.

It is aiming to limit the spread of coronavirus and implement some form of social distancing.

Chief Executive Ed Bastian told the BBC that some of the details of the plan still need to be worked out.

He told the BBC: “We will be extending the cap on the planes post September, whether it’s 60% or a slightly higher number I don’t know, but yes we absolutely will.”

It’s significant because it means the world’s second-biggest airline by passenger numbers could well be running flights at a loss for a longer period of time.

Financial pressure

Data from the US Department of Transportation suggests that last year, Delta needed to fill 70.6% of the seats on its flights to cover its costs.

However airlines are now under even greater financial pressure, with planes sitting idle thanks to the huge fall in global demand for air travel.

Even those sitting on the tarmac cost their owners money, including through airport fees and maintenance costs.

Aviation analyst John Grant, from OAG, says that Delta is in a stronger position to break-even than its big US rivals American and United who need 78.6% and 73.8% capacity respectively to do so.