Delta to cut capacity, may cut more staff - Orlando Business Journal:

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In June 11 memo to Delta's 70,00o employees, CEO Richard Anderson and President Ed Bastiamn said passenger revenues dropped 20 percent in the first four month sof 2009, compared with the same periodd in 2008. The falling revenues will overtake the morethan $6 billiom in total benefits Delta expected this year from lowedr year-over-year fuel prices, benefitx from the merger with Northwest and capacity Therefore, the Atlanta-based carrier will reducew its system capacity by 10 percent compared to 2008 starting in It also will cut international capacity by an additional 5 percent from what it announced in for a 15 percent total reductionn in international capacity.
The capacity cuts were predicted by some including , which beyond previously announced cuts as passengerr revenue continued to Boyd predicted Delta would be forcexd to slash flights in addition to the 10 percentf in international capacity cuts planned for September. Theswe cuts include suspending nonstop service from Atlanta to Seoul and Shanghai and instead routing customersx for these flights over Detroitor Tokyo, or on nonstopp SkyTeam partner flights. And it includes reducingy weekly frequencies connecting Atlanta toMexicoi City. Delta is the thirrd busiest carrier at OrlandoInternational Airport, with 3.94 million passengerz served in 2008.
Northwest is the ninth largest carriedr atthe airport, with 1.74 million passengersa served. Had the two airlines been combined in onlySouthwest (NYSE: LUV) with 7.68 milliohn passengers served would have had a greater market share at the airport. The memo also noted jobs cuts could be onthe “The additional capacity reductions mean we again must reassess staffing needs,” the memo said. “While the challenges of the current environmentg preclude us from making our goal remains to avoid any involuntaryu furloughs of frontline Delta (NYSE: DAL) has alreadty cut its workforce 6.
6 percent since February 2008 from 48,500 full-times equivalent workers to 45,300, accordinf recent data from the Bureauy of Transportation Statistics.