Rising fuel prices leads to Delta cutbacks
Delta Air Lines says it is will scale back on service as it cuts costs to make up for higher fuel prices, which it says is the main reason its income fell by 58 percent this year compared to this time in 2010.
It also said 2,000 workers took voluntary buyouts as part of its cutbacks.
Delta, the world's second biggest airline, was already planning to reduce flying more than usual later this year.
The 2,000 employees who accepted the buyouts represent more than 2 percent of the airline's workforce of roughly 80,000 people.
"We will resize the airline to new flying levels and reduce the size of our fleet, staff, and facilities," CEO Richard Anderson said on a conference call.
In addition to raising fares, airlines have been making plans to cut flying and focus on the routes passengers are willing to pay to fly, said the AP.
Delta said third-quarter capacity would be flat, and fourth-quarter capacity will fall 4 percent to 5 percent — one percentage point more than its previous plan.
The cuts will be "focused in markets where revenues do not cover higher fuel costs," the airline said. Domestic capacity will fall 1 percent to 3 percent, and international capacity will fall 4 percent to 6 percent.
Delta said it expects a third-quarter profit.
By David Wilkening
David
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