This is just a joke, not a real story, so don't take it so seriously.
Delta recorded a serious loss of over US$300 million, so the company decided to save operating costs by reducing number of aircrafts operating & making more seats available per aircraft.
The company reduced the sizes of the widebody aircraft seats so to cramp more passengers.
The economy class seats of B777s are changed to 10-abreast, 17" seat of 28" seat pitch, the Business Elite class are changed to 9-abreast 19" seat of 34" seat pitch, making the capacity of the aircraft increased from about 300 passengers to 500 passengers.
Similarly the economy class seats of B767 are changed to 8-abreast 16" seat of 28" seat pitch, and the Business Class seats have seat pitch reduced to 34", making the capacity of the aircraft increased from about 200 passengers to 300 passengers.
But the results are very disappointing. The load factor of Delta dropped from 70% to 25% in only 6 months, and there are lots of complaints on narrow seats & aisles of the aircraft, as well as presence of middle seats in Business Class cabin of B777. Passengers turned away from Delta to other airlines. Even residents of Atlanta, the hub of Delta & where the HQ of Delta is located, changed their more of transport by taking other airlines to other cities & then transfer for other airlines to continue their trip, like Continental to New York for trans-Atlantic flights, United to Los Angeles for trans-Pacific flights.
Delta went bankrupt only 9 months after the change of the seats, and US Airways, which has very comfortable seats of 34" seat pitch economy class seats on A330, purchased Delta for only US$1!! All Atlanta residents celebrated the bankrputcy of Delta, and the provision of more comfortable service by US Airways. US Airways become USA's 3rd largest airline since then, just after American Airlines & United.