Further cost cuts as demand slumps
Delta Air Lines has told employees it plans to cut management and executive positions in an attempt to stem losses on falling decline and rising fuel prices.
Reports have quoted a recorded memo sent to staff by Delta's ceo Richard Anderson and president Edward Bastian who together said further job cuts would be needed.
"Because of the severity of this economic downturn, we also must eliminate additional salaried positions beyond the management and administrative jobs already reduced over the last 18 months," the company memo said.
But neither Mr Anderson nor Mr Bastian indicated how many jobs would be cut or when an employee review would begin.
Delta has indicated that it would also look to make savings through other budget reductions.
Delta was unavailable this morning to comment on the details of the memo.
Last month Delta announced a second quarter net loss of $257m (€181m) including fuel hedging and costs related to its merger with Northwest last year.
Mr Anderson said the industry faced "substantial challenges from unprecedented revenue declines and volatile fuel prices."
Mr Bastian said he did not expect Delta to make "any meaningful recovery this year".
This year Delta said it plans to focus on maintaining liquidity and unit cost advantage, and generate a revenue premium.
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