Virgin Atlantic, which is 49% owned by Delta Air Lines Inc. (DAL), said Monday that will reduce its schedule by about 80% per day by March 26, citing the "rapid acceleration" of the impact of COVID-19 on demand. The air carrier said given restrictions to international travel, it permanently terminate its London Heathrow-to-Newark route "with immediate effect." the cuts will lead the company to park about 75% of its fleet, increasing to up to 85% at points in April. In an effort to cut costs, the company said it will be offering its employees a one-time voluntary severage package to all employees, a sabbatical of 6 months to 12 months, deferring pay increases until a review in January 2021, reducing pension contributions for one year and will continue to offer enhanced sick-pay policy, but with reduced terms to 12 weeks full pay. The carrier said it has appealed to the U.K. government for emergency credit facilities of GBP5 billion ($6.13 billion) to GBP7.5 billion for the aviation sector. Delta's stock dropped 12.6% in morning trading, and has tumbled 43.1% over the past month. In comparison, the U.S. Global Jets ETF (JETS) has plunged 50.4% the past month and the S&P 500 has tumbled 26.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 16, 2020 10:34 ET (14:34 GMT)
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