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]