Delta Air Lines will retire permanently its fleet of 18 Boeing 777 aircraft by the end of this year, CEO Ed Bastian said in a memo to employees.
The carrier is retiring the aircraft type, a part of Delta's long-haul network since 1999, as it expects a slow return to international travel, Bastian said. Delta will rely on its Airbus A330 and A350-900 fleet, a more fuel-efficient and cost-effective alternative to the 777s, for long-haul flights as demand returns, he said.
"Parking this fleet will provide significant cost savings over the next several years," Bastian said. "Delta went into this crisis in a position of strength, and this will be an important step to ensure we remain in a relatively strong industry position as demand recovers."
Delta currently is burning through about $50 million per day, and the carrier aims to reduce that to zero by the end of the year, Bastian said. He also noted that Delta has issued more than $1.2 billion in refunds since the Covid-19 crisis began, including $160 million so far in May alone.