Delta Air Lines is planning to notify more than 2,500 of its pilots next week that it may have to place them on furlough, CNBC's Leslie Josephs reported on Friday.
Approximately 7,900 pilots are reportedly qualified to take an early retirement option, but early retirements alone probably will not be enough to completely avoid pilot furloughs, John Laughter, senior vice president of flight operations at Delta, disclosed in an internal memo, based on a CNBC report.
Delta, Laughter reportedly stated, has too many pilots in the wake of the ongoing global health crisis, because of the falling demand for aviation.
The airlines and the labor union that represent Delta's over 14,000 pilots have reached a deal for an early retirement package, a move toward cutting the number of workers as the pandemic continues to deal a heavy blow on travel demand.
Pilots can apply for the early retirement option early next month and those accepted will be notified no later than August 4, according to a union memo sent to members early Friday that was also evaluated by CNBC.
The Atlanta-based carrier will continue its talks with the Air Line Pilots Association (ALPA) on an all-inclusive agreement that would include a no-furlough condition for two years, Laughter said.
Delta Airlines Chief Executive Ed Bastian had informed employees on Thursday that the carrier is planning to add around 1,000 flights in August but not many more for the remainder of the year. Bastian pointed out that while it would be reassuring to see flights returning, the airlines likely remains at least two years away from returning to normal.
Other major American airline companies, including United and American Airlines, are expected to follow Delta's lead and warn personnel of impending layoffs or furloughs in the coming weeks.
Under federal regulations, the carriers must issue a 60-day notice - or around early August for an October job cut. American Airlines and United encouraged its staff to take unpaid leaves of absence earlier this month.
The ALPA and Association of Flight Attendants-CWA are both working to get the US Congress to extend the employee protections under the CARES Act. ALPA represents pilots at Delta and a number of other airlines.
Airlines have been heavily battered in recent months as the pandemic has crippled global travel. The International Air Transportation Association estimated earlier this month that the global airline market's sales will plunge this year to around 50 percent of its 2019 figures.
