UPDATE 1-Delta plans additional capacity cuts | Markets | Markets News | Reuters



ATLANTA, June 11 (Reuters) - Delta Air Lines Inc (DAL.N) said on Thursday that it planned additional cuts in seat capacity this year as rising fuel prices and softer travel demand pressure business.
The world's biggest airline also said the planned capacity reductions meant it must again "reassess staffing needs," but added it would try to avoid involuntary layoffs.
In a statement, Atlanta-based Delta said it planned to reduce system capacity by 10 percent from 2008, with reductions beginning in September.
It also said it planned to cut international capacity an additional 5 percent on top of what it has already announced, for a total reduction of 15 percent. Earlier this year, Delta had said it would cut international capacity by 10 percent.
The company also said it would accelerate the merger integration with Northwest Airlines and keep tight controls on costs and spending.
The carrier cited cost pressures from rising jet-fuel prices and said the H1N1 flu virus outbreak contributed to softer travel demand.
Delta shares were down 1.8 percent at $6.43 in morning trading as other airline stocks fell. United parent UAL Corp (UAUA.O) was off more than 4 percent, while US Airways Group Inc (LCC.N) and American parent AMR Corp (AMR.N) each fell more than 2 percent. (Reporting by Karen Jacobs; Editing by Lisa Von Ahn)

 

Yep, I thought this would be out today. Not good. I would be very surprised if people did not hit the street this time around!

 

We all know what that means.

 

Yup, thanks to a newspaper down south they had to already announce 10 Saabs going back to Sweden starting in Sept. Mesaba is now looking at 200-250 on the street soon. Everyone is about to get donkey punched again.

 

Not to be negative, but two big airlines merging was bound to create redundancies. The first thing that usually happens is capacity cuts, route discontinuations, and cities disappearing from systems route maps. Then, there will be fleet reductions, hangar closures, hub closures, res center closures, gate/terminal space reductions and inevitably, the probability of...furloughs. I still think NWA/DAL is going to be a great airline; but not at it's current size.

 

Anyone who thought this was not coming was standing too close to the reactor.

NWA had greater effciencies and lower costs than DAL. Do you really think RA was going to combine the airlines so he could double his workforce, pay them all more and work them less? Oh yea, 1+1=3 Puleeze....

Next will be the return towards NWA type efficiencies both in the PWA and other parts of the airline. We'll survive - expect a wholesale blood bath on the ramp and agent side. We ain't seen nothing yet.

The only question on the pilot side is if we'll toss the end of the list under the bus to further outsourcing so as to preserve what we can a little longer...

 

I dont understand, how could you guys not see this coming? I know you all were hoping for the best but with the economy the way it is, as well as the usual reduction that goes along with "synergy" is this really a surprise that there may be a need to Furlough?

 

This isnt about pilot layoff, yet. There are ALOT of factors that go into this and its multi-level. there is a breaking point but we're not there yet.

 

I think that exists EVERYDAY in this industry.

 

Super,

Not to be negative but I believe we have reached the breaking point...... I know some have stated that they will not furlough if it will be for less than 24 months. But history has shown us different. I believed DAL was going to furlough pilots even before this capacity reduction, and now with this announcement I feel this is just the nail in the coffin.

Note: 757 here I come