Delta to slash international capacity and more jobs

Delta will reduce international capacity by 10% in September because of falling demand, the airline said on Tuesday at the JP Morgan Aviation & Transportation Conference.

The reductions are in addition to Delta's December announcement to reduce systemwide capacity by 6-8%.

In a letter to employees, Delta CEO Richard Anderson and Northwest CEO Ed Bastian said, "The worsening global economy continues to place additional pressure on the airline industry. In just the few months since we last announced capacity reductions, revenues have weakened, particularly in international markets. Once again, we must move quickly to adjust our capacity and stay in front of demand changes."

With the capacity cuts, Delta said the airline must continue to eliminate jobs. "As in the past, voluntary programs are always our first consideration to adjust staffing needs," wrote Bastian and Anderson.

Delta just concluded a voluntary program that will result in 2,100 employees departing over the next several months.

"While these voluntary reductions met our overall target, there are certain positions and geographic locations where we fell short of achieving the goals of the voluntary programs," wrote the two CEOs.

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