CNN has reported Delta Air Lines has announced plans to furlough nearly 2,000 pilots in October, the news source said.
The federal bailout, known as the CARES Act, is set to expire at the end of September. The bailout prohibited the airline industry from employee layoffs, involuntary furloughs or pay cuts. Delta received USD 5.4 billion in grant funds and unsecured loans from the CARES Act, according to an SEC filing.
The airline currently has 11,200 active pilots, according to the memo. The company projects the a need for roughly 9,450 pilots for the summer 2021 schedule, which Delta expects to be the peak flying period for the next year or so.
Delta warned employees back in May of potential employee cuts.
Along with other airlines, Delta urged employees to take advantage of buyout and voluntary exit programs, one which included a retirement package for employees who have worked at Delta for more than 25 years. Despite employees opting into these programs, it wasn´t enough to prevent furloughs.
Since the pandemic hit, Delta says only 25% of revenue has been recovered.