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Delta Air Lines will charge employees on the company health plan $200 a month if they fail to get vaccinated against COVID-19, a policy the airline's top executive says is necessary because the average hospital stay for the virus costs the airline $40,000.
CEO Ed Bastian said that all employees who have been hospitalized for the virus in recent weeks were not fully vaccinated.
The airline said Wednesday that it also will stop extending pay protection to unvaccinated workers who contract COVID-19 beginning Sept. 30, and will require unvaccinated workers to be tested weekly beginning Sept. 12, although Delta will cover the cost.
They will have to wear masks in all indoor company settings.
Delta stopped short of matching United Airlines, which will require employees to be vaccinated starting Sept. 27 or face termination. However, the $200 monthly surcharge, which starts in November, may have the same effect.
Delta and United fly to Eastern Iowa Airport in Cedar Rapids.
“This surcharge will be necessary to address the financial risk the decision to not vaccinate is creating for our company," Bastian said in a memo to employees.
Delta is self-insured and sets premiums for its plans, which are administered by UnitedHealthcare.
Bastian said that 75 percent of Delta employees are vaccinated, up from 72 percent in mid-July.
He said the aggressiveness of the leading strain of the virus “means we need to get many more of our people vaccinated, and as close to 100 percent as possible.”
A growing number of companies including Chevron Corp. and drugstore chain CVS announced they will require workers to get vaccinated after Monday's FDA decision.