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Delta details planned capacity cuts

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...and yet, ALSO this morning....

Delta Air Lines could see $5 bln benefit in '09 with $50 oil

By Christopher Hinton
Last update: 8:51 a.m. EST Dec. 2, 2008

NEW YORK (MarketWatch) -- Delta Air Lines (DAL delta air lines inc del com new

<IMG class=pixelTracking height=1 width=1 border=0>DAL) could see a $5 billion benefit in 2009 if oil remains at around $50 a barrel, said Ed Bastian, the company's president. In a Tuesday meeting with analysts in New York, Bastian said the rapid decline in fuel prices have more than offset a decline in passenger numbers and the slower revenue growth that followed. With oil prices most recently around $50 a barrel, passenger revenue would have to decline more than 20% to lose the cost benefit of cheaper fuel, and not even the terrorist attacks on Sept. 11, 2001, were able to do that, he said. For 2008, post-merger Delta will have paid $100 a barrel equivalent for jet fuel. Shares of Delta was up 3.5% in premarket trading to $8.24.
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http://hosted.ap.org/dynamic/stories/D/DELTA_OUTLOOK?SITE=WVEC&SECTION=HOME&TEMPLATE=DEFAULT

December 2, 2008
Delta details planned capacity cuts

By HARRY R. WEBER AP Airlines Writer
Delta Air Lines Inc. hinted Tuesday that more job cuts could be on the way as it disclosed that it will reduce consolidated system capacity by 6 percent to 8 percent in 2009, compared to the current year.
The Atlanta-based carrier's president, Ed Bastian, spoke to investors during a conference in New York.
In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.
The news comes as a global financial crisis hits airlines hard by reducing demand for seats.
"Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand," Bastian and Chief Executive Richard Anderson said in a memo to 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."
The memo also said that Delta is analyzing the impact on staffing as it pertains to the planned further capacity reductions and "as in the past, we will offer voluntary programs to adjust staffing needs." The memo did not elaborate.
"We are taking these actions to secure your careers and return us to sustained profitability," the two executives said.
In connection with capacity reductions put in place earlier this year, Delta said it would cut roughly 4,000 jobs.
Delta acquired Northwest Airlines Corp. on Oct. 29. It is in the process of integrating the two carriers' operations.
 
Yep, there is a lot going on here. These announcements are coming out in a specific order.
This was the cut that a few of us have been talking about for a few months.
Nothing new. Frequency on international routes, with redeployment of these jets to low utilization route. Some mainline cuts but the majority "SHOULD" be DCI.
 
This reduction in service INCLUDES the previously announced reductions. A good chunk of the domestic reduction will be on the regional side - the international cuts will be mostly a reduction in weekly service, not a cut in cities served. We will be pulling 767ER's out of service for the winglet mods and increasing the amount of 757ER service. That alone means a reduction in seats flown but not a reduction in flying.

Bottom line: if you are a Delta pilot, don't panic yet. Get your logbook up to date, yes. But don't panic.
 
This reduction in service INCLUDES the previously announced reductions. A good chunk of the domestic reduction will be on the regional side - the international cuts will be mostly a reduction in weekly service, not a cut in cities served. We will be pulling 767ER's out of service for the winglet mods and increasing the amount of 757ER service. That alone means a reduction in seats flown but not a reduction in flying.

Bottom line: if you are a Delta pilot, don't panic yet. Get your logbook up to date, yes. But don't panic.

If it includes the already announced reductions....why is it new...news then??
 
If it includes the already announced reductions....why is it new...news then??

There are additional cutbacks, but the total numbers include the previously announced reductions. So this is new news, but its not as big as it first seems.
 
internal memo out that discusses this. These are primarily previously announced reductions.
 
In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.
There are additional cutbacks, but the total numbers include the previously announced reductions. So this is new news, but its not as big as it first seems.
Are you sure this includes previously announced numbers? The wording in the article is a bit confusing. "A reduction of 8 to 10 percent compared to 2008." Well, which part of 2008. January, or November? Didn't Delta cut about 12% already this fall? Because the way I interpret the article, it seems that Delta is now cutting capacity an additional 8 to 10 percent beyond the cutbacks they already made this fall.
 
Yes, it is what it is stated on the internal memo.

Also that is year over year looking at summer numbers. It is taking in to account the cuts that were made for Q4 of 08. (The cuts made after Labor Day)
 

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