Delta Air Lines today said it would reduce international capacity by 10 percent beginning in September, focusing on reductions in transatlantic and transpacific markets.
In a memo to employees today, CEO Richard Anderson and president Ed Bastian said they would pare flying to markets witnessing "revenue weakness." By the fourth quarter, Delta expects transatlantic capacity to be down as much as 13 percent and transpacific capacity to drop by up to 14 percent, compared with the same period in 2008.
To achieve those cuts, the carrier plans exit "low-performing markets, down-gauge certain routes, adjust frequencies and move some markets to seasonal service." The memo did not detail the specific markets that will witness cuts. The carrier said capacity to Latin America should be up "slightly in the fourth quarter."
Bastian today during the J.P. Morgan Aviation & Transportation Conference in New York said Delta's cuts are aimed to "address international weakness." Bastian said the carrier's domestic business is "relatively right-sized," though he expects some "modest trimming of the domestic network" at around a 5 percentage-point reduction over last year.
Delta in December said it would further reduce systemwide capacity by up to 8 percent in 2009, representing domestic cuts of as much as 10 percent and international cuts of up to 5 percent
(BTNonline, Dec. 2, 2008).
"In just the few months since we last announced capacity reductions, revenues have weakened, particularly in international markets," Delta executives said today in a memo.
In light of the newly announced cuts, Delta said it would need to "reassess our staffing needs" and aim to achieve reductions through voluntary programs.