Delta to cut capacity, may cut more staff - Orlando Business Journal:

xosawewaqa.wordpress.com
In June 11 memo to Delta'se 70,000 employees, CEO Richard Anderson and President Ed Bastian said passengedr revenues dropped 20 percent in the first four monthdof 2009, compared with the same period in 2008. The falling revenuese will overtake the morethan $6 billion in totall benefits Delta expected this year from lower year-over-yeaf fuel prices, benefits from the merger with Northwest and capacit reductions. Therefore, the Atlanta-based carrier will reduce its system capacity by 10 percent compared to 2008 startingin September. It also will cut international capacitgy by an additional 5 percent from what it announced in for a 15 percent total reduction ininternational capacity.
The capacityg cuts were predicted by some including , which beyond previously announce d cuts as passenger revenue continuesd to decline. Boyd predicted Delta would be forced to slashj flights in addition to the 10 percenty in international capacity cuts plannedfor September. Thess cuts include suspending nonstop service from Atlanta to Seou l and Shanghai and instead routing customers for these flights over Detroitor Tokyo, or on nonstoo SkyTeam partner flights. And it includew reducing weekly frequencies connecting Atlanta toMexico City. Deltza is the third busiest carrie r at OrlandoInternational Airport, with 3.94 million passengers served in 2008.
Northwesg is the ninth largest carrier at the with 1.74 million passengers served. Had the two airlinesw been combinedin 2008, only Southwest (NYSE: LUV) with 7.68 millio passengers served would have had a greatert market share at the The memo also noted jobs cuts couldd be on the horizon. “The additional capacithy reductions mean we again must reassessstaffingt needs,” the memo said. “While the challenges of the curreng environment preclude us from making our goal remains to avoid any involuntary furloughs of frontline Delta (NYSE: DAL) has already cut its workforced 6.
6 percent since February 2008 from 48,50p0 full-time equivalent workers to 45,300, according recengt data from the Bureau of Transportation