Delta to cut 2,000 jobs as oil cost hurts
Delta Air Lines said Tuesday that it planned this year to shed 2,000 employees, or about 4% of its workforce, as it cuts domestic flights to cope with higher costs from soaring fuel prices.
Calling jet fuel costs “unprecedented, if not a crisis for this industry,” Delta President Ed Bastian told New York analysts Tuesday morning that the airline also would ground about 40 planes and shift its focus to more lucrative international markets.
“We’re going to reduce the head count and get the cost out,” Bastian said. At the same time, he added that “International diversification will be key to our long-term success.”
The company, which previously announced that it would trim domestic flights by 5% this year, said those cuts would be increased to 10%.
The cutbacks are expected to have a modest effect on passengers at Los Angeles International Airport, where Delta is the fourth-largest carrier. The airline had hoped to grow there by about 15% but now plans to curtail the expansion rate to about 2%, a Delta spokesman said.
In all, the Atlanta-based carrier said it hoped to shed about 2,000 workers through voluntary buyouts, attrition and other initiatives.
About 30,000 of the 55,044 full-time employees will be eligible for the buyout offer, the airline said.
The severance program will not affect Delta pilots, who have a union contract with the company, and employees at Delta regional carrier Comair, which is based in Erlanger, Ky.
Bastian said fuel costs are expected to grow by more than $2 billion this year as oil prices continue to climb.
Oil recently cracked $111 a barrel -- nearly twice what it was a year ago. Earlier, United Airlines, the nation’s second-largest carrier, said it also was mulling over cuts amid record fuel costs.
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