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Delta to make changes in response to rising fuel costs

By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 03/14/08

Delta Air Lines will announce changes to its business plan next week in response to a steep increase in jet fuel prices, Chief Executive Richard Anderson told employees Friday.

Anderson said the price of jet fuel, Delta's biggest expense, has risen 85 percent over the past year.
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"It has had a huge impact on Delta and the airline industry," he said in the taped message to employees.

Friday, the spot price of jet fuel rose 2 cents to $3.32 per gallon, a new record. Each penny-per-gallon increase in the cost of jet fuel raises Delta's annual fuel expense by roughly $25 million.

Delta's share price fell almost 9 percent Friday to $9.60, its lowest point since it emerged from bankruptcy last year.

Anderson said the Atlanta-based airline will continue its earlier plan to raise fares and to trim unprofitable flights to offset rising fuel costs. However, he also indicated that the airline needs to ramp up changes to its operations to deal with rising costs.

"You'll continue to see a more comprehensive plan that we will roll out next week in reaction to changes in the marketplace," he said, without offering specifics. "At the same time, we're working hard within the revenue environment to right size the airline to the marketplace."

Anderson did not specifically mention any plans for job cuts. However, Delta soon could be building its case for why such cuts are needed. Anderson said Delta will share information with employees next week on its internal Web site documenting its efforts to pass rising fuel costs onto customers rather than requiring sacrifices from employees.

He said Delta announced plans this week to discontinue several domestic routes that are unprofitable at current fuel prices.

In December, Delta announced an earlier $400 million cost-saving plan that included reducing domestic capacity by up to 5 percent, shedding more than a dozen older aircraft and cutting an undisclosed number of jobs, mostly through attrition.

 

Shouldn't open time be back up soon for the 50 SAW?

 

Wait until tomorrow afternoon when the CVG CRJ50 FO SAW opens at noon.

 

the end of the 50 seater is here..I'm not gonna be surprised of they go gonzo.

go-go gadget resume!

 

I think you meant if instead of "of"

anyway resume? you think they are going to be reducing their pilot count?

 

Who knows..per "contract" we're supposed to keep 41% of all DCI flying...but since when do any contracts mean anything in this stupid industry?

I've seen a MAG/FRD cr9 canceled every single day out of JFK to some destination (DCA/ORD to name a few)

Here's an idea DL. I don't even have to say it, cause everyone with 1/90th of a brain knows what they should do with those carriers.

 

Because, as I might have mentioned, I have an interview on the 25th... and it would seem pointless to hire me while reducing their trained staff?

 

Ok, time to catch up on my replies . . .

Not a stupid question. Comair does a pretty ****ty job of explaining how to bid and how SBS works in general. They should have given you a little book in ground school that look's like it hasn't been updated for years (like SBS). Blue Moon did a good job of explaining the airport reserve. Also, when you see an 'A' next to the day on your line that is also an indication of airport ready reserve.

What's the other side of the story? I've been doing the 6 on, 1 off, 6 on, etc. crap for a long time and it can be pretty exhausting. And yes, I've called in FE before.

It's not just DL that will be reviewing their business plan in the next few weeks. Everyone will feel the effects of rising fuel costs. DL has already cut a few routes a few days ago (ATL-ACY, ISP and SLC-FAR). I'm sure we will also see some additional routes cut out of CVG/JFK. The 50 seat RJ is history. They don't even built them anymore.

Good luck on your interview! However, I would recommend you go interview at a few other places and then make an informed decision on what is best for you or your family. There are better airlines out there than Comair.

As far as I know we are still hiring 8-10 new pilots every month. I've also heard they have stopped hiring F/As at this time. I think pilot hiring will continue to slow or stop over the next few months. XJT is not hiring and no classes at this time, possible furloughs? SkyWest has slowed their hiring. ASA might be done hiring as well.




P.S. I don't have to sit reserve next month

 

Thanks, I would like to interview anywhere that will have me... I have been blasting out my resume for a couple weeks. Interviewed at eagle last week but it didn't happen. It's a bummer to hear about the boom for about year (I think) and now I'm in a position to apply and oil has to hit a super record high!

And Congrats on not being on reserve hope it stays like that!

 

Sorry Eagle didn't work out for you. Remember there are a lot of flying opportunities out there besides the regionals. I've done flight instructing, traffic watch, Infrared aerial imaging and charter/corporate flying. Also, I wouldn't settle for some crap regional, especially if hiring wouldcome to a standstill at others.


I won't.