Delta to pause flights to 11 cities in reminder of US weakness

Bloomberg

Delta Air Lines Inc will drop service to 11 midsize US cities next month amid weak demand because of the Covid-19 pandemic, a reminder of the industry’s fragility after a record stock rally.
The service suspensions affecting cities from Aspen, Colorado, to Bangor, Maine, will help lower costs, Delta said in a statement. The affected airports are among 75 authorised this week for service cuts by the US Department of Transportation. They all will retain at least some flights from other carriers, the agency said.
“Delta continues to face an unprecedented impact to our business, and suspending operations at these airports will reduce costs where customer demand is low,” said Sandy Gordon, senior vice president of domestic airport operations.
Delta’s cuts provide a counterpoint to investor exuberance after American Airlines Group Inc boosted its flight schedule for next month and United Airlines Holdings Inc followed suit hours later, signalling gains in demand. American’s announcement spurred major stock gains, but even with the additional flights, total July capacity at both carriers will still fall by more than half from last year’s levels.
Underscoring the outlook for a slow recovery, United said it would close three out of its four international bases for cabin crews.
The company will shut the bases in Hong Kong, Tokyo and Frankfurt effective from October 1, with only the London base staying open, as the company braces for an even slower rebound in international flying than domestic service.
The decision will affect about 840 flight attendants, some of whom would have the opportunity to transfer to bases located in the US, depending on their eligibility to work in the country, the company said.
“International is slower growing because there are still quarantine rules in place that limits the ability of people to travel to Europe and to Asia,” Cowen analyst Helane Becker said.