Delta Air Lines executive officers will take a 50 percent pay cut through June 30 and managing directors a 25 percent cut over the same period as part of a plan communicated Wednesday in a memo to employees from CEO Ed Bastian to cut cash expenditures by $4 billion in the fiscal quarter ending in June. Bastian, who announced last week he would forego a salary for the next six months along the rest of Delta’s board members, reported that the company is grounding at least half its fleet, or about 600 aircraft, and accelerating retirements of aging aircraft such as its MD-88/90s and some of its Boeing 767s.

Delta expects revenue for March to decline by almost $2 billion from the same month last year and projects its April intake to fall still further. To stem the losses it now plans a 70 percent systemwide capacity cut until demand starts to recover. Plans call for Delta to reduce its international flying by 80 percent over the next two to three months.

“We are having constructive discussions with the White House and Congress and remain optimistic that our industry will receive support to help address this crisis,” said Bastian. “That said, we have to continue to take all necessary self-help measures. Cash preservation remains our top financial priority right now. Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis and protect Delta's future.”

Delta has asked its employees to consider voluntary leave during the crisis. So far 10,000 Delta employees have volunteered. “I want to thank each of the roughly 10,000 Delta people who have already volunteered and I urge everyone, especially our merit employees, to seriously consider whether a temporary leave makes sense for you and your family right now,” said Bastian. Delta has promised to maintain access to health and flight benefits to anyone on leave.