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 on Sept. 30, and will require unvaccinated workers to be tested weekly beginning Sept. 12, although...