Delta Air Lines announces spike in health insurance premiums for non vaccinated employees

Cracking the whip on employees who have not taken the covid jab, Delta Air Lines, Inc. (NYSE: DAL) announced that the company would increase health insurance premiums for them. This rule will be effective starting November 1 this year. As a result, non (covid) vaccinated employees of the aviation company will face a hike in health insurance premiums by $200 a month. This move is announced in the backdrop of higher Covid costs to cover employees who are hospitalized and undergoing treatment for the covid virus.

Unvaccinated employees of Delta Air to face other restrictions too

Unvaccinated employees of Delta Air will meet conditions like masking while indoors and getting tested for covid weekly. These new rules will be effective from September 12, the aviation company announced. The rules are implemented to support the U.S. Corporation’s bid to boost the covid vaccination rates.

From September 30 onwards, vaccinated employees of the company who are experiencing a breakthrough infection will be eligible for pay protection.

Delta Air CEO Ed Bastian communicates through an employee memo

In an employee memo, Delta Air CEO Ed Bastian said:

In the backdrop of the delta variant of the covid virus spreading, Bastian expressed concern that more employees need to be vaccinated. A spokeswoman from the airline company stated that the U.S. Food and Drug Administration had given full approval for using the Pfizer vaccine. Calling the timing of the backing a coincidence, she mentioned that it had been weeks since the plan had been in the pipeline. Meanwhile, Delta Air announced that it had intimated the Air Line Pilots Association, their aviators’ labor union, of the changes.

Alaska Airlines earlier this month informed that it was considering having its employees inoculated against covid, provided the vaccines received full approval. Likewise, frontier Airlines of the Frontier Group Holdings Inc (NASDAQ: ULCC) has made it compulsory for its employees to take the jab or undergo mandatory covid test regularly.

Airlines are hit hard due to the pandemic, and the impact of the delta variant of the covid virus is taking a toll on bookings, according to airlines including Southwest Airlines Co (NYSE: LUV), American Airlines Group Inc (NASDAQ: AAL), and Spirit Airlines Incorporated (NYSE: SAVE).