Delta Reduces Capacity, Cuts 2,100 Jobs

Delta Air Lines is cutting international capacity by 10 percent; this follows an announcement in December that it would reduce its capacity systemwide in 2009 by 6 to 8 percent.

It is also cutting about 2,100 employees, which were described as “voluntary” reductions by CEO Richard Anderson and Edward Bastian, president of the airline. Anderson and Bastian notified employees of the additional capacity cuts in a company memo.

The voluntary reductions met Delta’s overall target, according to the memo, but there are some positions and geographic locations where more cuts are needed, and the company will reassess its staffing needs. The memo said that it will continue to look for voluntary cuts first.

The latest reductions will be targeted in areas where Delta has seen the most revenue weakness –the Atlantic and Pacific networks. Trans-Atlantic capacity this winter will be down 11 to 13 percent, with trans-Pacific down 12 to 14 percent compared to winter 2008.

To achieve these capacity changes, Delta will exit low-performing markets, down-gauge certain routes, adjust frequencies, and move some markets to seasonal service. The airline told employees it remains focused on its goal to build a diversified, profitable worldwide network.

To this end, even as it reduces its Atlantic and Pacific capacity, its Latin America capacity will be up slightly in the fourth quarter as it take advantage of targeted growth opportunities through new routes and increased frequencies. The memo said that Delta’s merger with Northwest is delivering tangible benefits.