Delta Cuts Down More Flights to Curb Costs

December 3, 2008

(ChattahBox) — As the economic recession continues to hurt the travel and tourism industry, airlines get more stringent to curb costs. Delta Airlines has announced that it plans to shed nearly 8 to 10 percent of its domestic seats in 2009 and cut nearly 3 to 5 percent of its international flights. The company has already trimmed its unprofitable routes and has reduced its capacity by 12 percent this year.

Falling gas prices had made passengers hopeful about reductions in airfares but the airlines have further witnessed a drop in their bookings due to a slowdown in business and leisure travel. Nearly every airline has undergone capacity cuts as they have either reduced their number of flights or are flying smaller planes with fewer seats.

According to the President of Delta, Ed Bastian, the company has the flexibility to cut or reallocate its flights. It had merged earlier this year with Northwest Airlines, making it the world’s largest airlines by traffic. He added that the current economic scenario does not affect Delta’s synergies from the merger, including a $500 million benefit in 2009.

Delta, whose seven hubs include a New York hub and Northwest’s Detroit hub, has seen weakness among corporate customers in the financial sector and the automotive industry. Bastian and Delta Chief Executive, Richard Anderson, wrote to employees about the capacity cut as a result of global recession and weaker demand for the air travel. The company also said that there will be staff cut through voluntary programs and it is only dealing with the economic reality to date.


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