News Roundup: Austrian, Delta, United, LGW

Lufthansa Group owned Austrian Airlines has announce a 25% permanent reduction in its fleet to be phased in during the rest of this year.

The remaining Dash-8’s will go immediately but were already being phased out. There will be a reduction of 3 767-300ER’s ( OE-LAT, OE-LAW and OE-LAX-) leaving just 3 in the fleet. The rest of the reductions will be the entire A319 fleet of 7 aircraft. The aim is to reduce the fleet to just 60 aircraft.

Delta ended a multi year streak of profits with a huge $531m loss in the first three months of this year. It’s engaged in substantial use of its revolving credit facilities borrowing $3 billion, sold and leased back aircraft and cancelled its dividend and share buy back schemes.

It’s also delayed delivery of aircraft with Airbus. The airline also took a large slice of the Federal CARES Act salary support scheme for staff. Delta also announced it had grounded 650 aircraft.

United Airlines is to try and sell 39.2 million shares in an effort to raise cash from investors. It’s also sold and leased back all of its MAX aircraft delivered but grounded, and six of its grounded 787’s.

LGW, who were one of the smallest European airlines left, supplied 15 Dash-8’s exclusively to Eurowings on a full service contract. Eurowings cancelled the agreement on short notice because of the virus crisis, and the airline has no choice but to enter administration and will self liquidate.