Delta is getting smaller, AJC writer Kelly Yamanouchi reports.
The Atlanta-based airline is cutting its trans-Atlantic flight capacity by 10 percent to 12 percent after Labor Day, saying it needs to adjust to higher fuel costs and declines in demand, Yamanouchi writes.
The reduction is part of a collection of moves Delta is taking to cut back, Yamanouchi reports. Delta previously announced that it will reduce flight capacity across its worldwide system by 4 percent after Labor Day compared with the same period of last year, and had acknowledged that one of the weakest areas is trans-Atlantic flights.
Delta also earlier this month announced it will offer buyouts and early retirements to cut its workforce, though it gave no target figure, Yamanouchi writes.
“We will be a smaller company,” Delta president Ed Bastian said Thursday during a presentation at a Merrill Lynch conference in Boston, Yamanouchi reports. He said Delta will be 5 percent smaller than previously planned by the end of this year.
Bastian said fuel costs, reduced demand to Europe, turmoil in the Middle East and the disasters in Japan have all hurt air travel. After posting a $593 million profit for 2010, Delta fell into the red in the first quarter, with a $318 million loss, Yamanouchi writes.
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- Henry Unger, The Biz Beat
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