Oil price forces Delta to fly less in 2012

Second-biggest US carrier to cut capacity in some markets

Delta Air Lines, the second biggest airline in the USA, has announced plans to cut capacity by between 2% and 3% next year, with reductions to be made in markets where the carrier is unable to battle high oil prices. This follows capacity reductions of up to 5% already being implemented in 2011. On the trans-Atlantic routes it will cut capacity by between 7% and 9% by the end of 2011 together with partners Air France-KLM and Alitalia.
Besides fuel price inflation, Delta is trying to lower non-fuel expenses by offering voluntary buyouts to 55,000 employees. It is also trying to save more than $80 million a year by cutting facility costs at 170 airports.  Around 140 older and less fuel-efficient planes will be retired by the end of 2012. Delta is not bringing in new aircraft until 2013.
Zacks Investment Research
[photo courtesy SkyTeam]


Check Also

Widerøe, air france, codeshare, travel, tourism, Norway, KLM, ticket, flights, connections, Scandinavia, Oslo, Bergen

Widerøe in deal with Air France as well as KLM

Several months after it signed a codeshare agreement with KLM, Widerøe approves one with Air France.

Air France, KLM, management, ceo, cfo, search, successor, open letter

Troubled search for a new Air France-KLM chief

There has been a backlash since rumours that the CFO of a water and waste management company was about to be nominated.

KLM, Boston Consulting Group, AI, artificial intelligence, robots, operations, airline, business, data, future, technology

KLM uses AI for airline operations

The Dutch airline looks at improving operations and boosting growth by using artificial intelligence.

Air France, Accorhotels, accor, buy, stake, sale, swap, government

AccorHotels may buy into Air France-KLM

There are several ways a deal between Accor and the French government could work.

KLM, Vaxjo, Växjö, Sweden, biofuel, Panama, trees, forest, aircraft, fuel, destination, Södra

KLM starts flights – sustainably – to Växjö

The Dutch airline collaborates with local partners in Sweden in an effort to cut emissions.

Air France, Accorhotels, accor, buy, stake, sale, swap, government

Air France may “disappear” as strikes intensify

France’s economy minister gives a stark warning about the airline’s future prospects.