Delta considering capacity reductions in 2009

On Tuesday, Delta Air Lines disclosed that it will be reducing consolidated capacity by between six and eight per cent next year, suggesting that additional job cuts could be in the cards.

The president of the Atlanta-based carrier, Ed Bastian, revealed the capacity reductions when speaking to investors at a conference in New York.

In a regulatory filing prior to his speech, the world’s largest airline noted that its domestic capacity for 2009 will be reduced by 8-10 per cent and international capacity will be reduced by 3-5 per cent in 2009, as compared with the current year.

The news from Delta comes at a time that global economic conditions have hit airlines particularly hard, particularly in leading to a reduction in passenger demand.

“Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand,” said Bastian and chief executive Richard Anderson jointly in a memo to the airline’s employees. “These economic hurdles are difficult, and we remain committed to building our company on a durable financial foundation with industry-leading liquidity. Remember that speed wins so we will be decisive and not delay.”

In the memo the executives also noted that Delta is considering the impact of planned capacity reductions on staffing and “as in the past, we will offer voluntary programs to adjust staffing needs.”

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