Delta Airlines to reach a preliminary cost-cutting deal to prevent furloughs

On Thursday, Delta Air Lines Inc (DAL.N) and its pilot union announced that the airline had reached a preliminary cost-cutting deal that would prevent temporary layoffs until the next two years.

Air Line Pilots Association’s unit Delta MEC stated that the agreement still needs approval from its 13,000 pilots.

According to the union, the agreement would reduce monthly minimum guaranteed hours by 5% and give partial pay of 30 hours a month to Delta’s pilots who received furlough notices.

“While this agreement is still subject to approval by the (union’s executive council), we are confident this can help Delta to be better positioned through the long and choppy COVID-19 pandemic recovery,” said John Laughter, Delta’s chief of operations in a note to employees.

Major airlines in the United States were prohibited from furloughing jobs until October 1, 2020, under the terms of a federal aid worth $25 billion for the aviation sector.