Tuesday, March 10, 2009

Delta Air Lines Plans to Cut International Flights

Company says 10 percent of overseas flights will be cut

Delta headquarters

Delta headquarters

As fuel prices fluctuate and demand for plane tickets decreases, Delta Air Lines is feeling the pinch of the recession. The company says it will eliminate 10 percent of its international flights to save money.

Delta says its Atlantic and Pacific networks have the weakest revenue, so the flights will be cut from there. Unlike the auto industry, the airline won’t be asking the government for quick loans.

Cuts on top of cuts

Because Delta has already made some cuts, its trans-Atlantic capacity this winter will be down 11 to 13 percent compared to winter 2008. Its trans-Pacific capacity will be down 12 to 14 percent.

Delta is the largest carrier in the world. It had previously said it would cut its capacity this year by 6 to 8 percent. The company’s CEO and its president released the memo to the staff  announcing the additional cuts today.

Company faces staff cuts

Because of the reduced flights, the company says it must “reassess its staffing needs.” The memo today said that Delta expects 2,100 to leave the company voluntarily over the next several months. However, it’s possible that won’t be enough.

One bright spot

The only increase the company expects to see over the next year is in the amount of flights to Latin America. Delta expects sales on those flights to be up slightly this winter. ... click here to read the rest of the article titled "Delta Air Lines Plans to Cut International Flights"

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