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Delta to trim future domestic, int'l capacity

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pb4ufly

Just a Member
Joined
Dec 15, 2001
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131
Delta Air Lines to trim future domestic, international capacity; Carrier cites slowing demand

By HARRY R. WEBER , Associated Press
November 21, 2008
ATLANTA - Nine days after announcing new overseas routes for 2009, Delta Air Lines Inc., the world's biggest carrier, said in a regulatory filing Friday it plans to reduce future domestic and international capacity because demand for seats has slowed amid the global financial crisis.
The Atlanta-based airline did not provide specifics, but did say it would give more details about its outlook in early December.
Spokeswoman Betsy Talton said Delta still plans to add starting next spring the 15 new international routes it announced Nov. 12, but the company will continue to monitor performance.
It was unclear if future capacity reductions would mean a net reduction in international capacity next year or simply smaller growth. When the new overseas routes were announced, a Delta executive told reporters that overall international capacity in 2009 would be slightly larger than in 2008, while overall domestic capacity would be slightly smaller.
In a Securities and Exchange Commission filing Friday, Delta said that demand has slowed over the course of the fourth quarter, which began Oct. 1 and ends Dec. 31. Domestic advance bookings are running two points higher year-over-year, reflecting capacity reductions in the domestic system. International bookings are down 4 to 5 points, Delta said.
"As a result, we are evaluating our capacity plans for 2009 on both the domestic and international system and expect to reduce future capacity to better align supply with current levels of demand," Delta said.
Delta said that as a result of its $2.8 billion acquisition of Northwest Airlines, which it completed Oct. 29, Delta's consolidated reported results for the fourth quarter will include Northwest results from Oct. 30 through the end of the year, in addition to Delta's standalone results for the entire quarter. The comparable 2007 figures will include only Delta standalone results.

The airline said its guidance in its investor update Friday excludes special items and the impact of applying purchase accounting to the merger.
Delta said that for the fourth quarter, it expects operating margin to be 0 percent to minus 2 percent. Operating margin is operating income as a percentage of sales or revenue.
It said consolidated revenue per available seat mile would be up 2 percent to 4 percent. It said system capacity would be down 4 percent in the quarter.
Delta's shares fell 1 cent to $7.01 in morning trading Friday.
 
What is Anderson going to ask for first: Paycuts or furloughs? Or will the Delta guys offer up the paycuts? Interesting times.
 
Heard Bastien speak the last week, with the current economy and revenues his opinion was that the industry would reduce capacity another 7-10%.

He definitely said we were not in the market for more RJ's, and actually have been getting rid of RJ's.

Hopefully, it will be a system reduction with a continuation of RJ reduction ! (domestically obvious)
 
Bring those 767-400s to DHN!!!!

-Welcome Back, Gen!
 
Bring those 767-400s to DHN!!!!

-Welcome Back, Gen!

Thanks, but I've always been back. And, most of those cities should probably have connecting VAN service, and maybe you could get your commercial drivers license and get hired. That would be FANTASTIC for you. Don't go slow in the left lane please, and watch out for the Blue Supper Shuttle vans, those guys are heartless.


Bye Bye--General Lee
 
Thanks, but I've always been back. And, most of those cities should probably have connecting VAN service, and maybe you could get your commercial drivers license and get hired. That would be FANTASTIC for you. Don't go slow in the left lane please, and watch out for the Blue Supper Shuttle vans, those guys are heartless.


Bye Bye--General Lee

I make my own "supper", don't need a van to bring it to me!
 
I make my own "supper", don't need a van to bring it to me!

You don't get those SUPPER Shuttle vans in your area? I think they are Jenny Craig. They bring DAMN FANTASTIC food, but their drivers are crazy.

Bye Bye--General Lee
 
Heard Bastien speak the last week, with the current economy and revenues his opinion was that the industry would reduce capacity another 7-10%.

He definitely said we were not in the market for more RJ's, and actually have been getting rid of RJ's.

Hopefully, it will be a system reduction with a continuation of RJ reduction ! (domestically obvious)
Delta is pulling down some flying over the North Atlantic and replacing it with Africa. Reflecting the increased block hours there is currently an open bid for ~ 220 767ER slots in CVG.
 

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