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Latest Business News

Higher Fuel Prompts Delta to Cut Jobs

Tuesday, March 18, 2008 3:51:15 PM
By HARRY R. WEBER

 A Delta Airlines Shuttle plane, foreground, taxies on the runway at Washington's Ronald Reagan Washington National Airport, in this Feb. 20, 2008 file photo.  Delta Air Lines on Tuesday, Mar. 18, 2008 said it will offer voluntary severance payouts to roughly 30,000 employees _ more than half its work force _ and cut domestic capacity by an extra 5 percent this year as part of an overhaul of its business plan to deal with soaring fuel prices.  (AP Photo/Haraz N. Ghanbari, file)ATLANTA (AP) - Delta Air Lines, faced with a weak economy, dimmer hopes of a combination with Northwest Airlines and record fuel prices that are eating up profits, said Tuesday it will offer voluntary severance payouts to roughly 30,000 employees — more than half its work force — and cut U.S. capacity by an extra 5 percent.

Executives at Atlanta-based Delta said in a memo to employees that the airline's goal is to cut 2,000 frontline, administrative and management jobs through the severance program, attrition and other initiatives.

Delta spokeswoman Betsy Talton said the company would accept more job cuts, if more employees than its goal take the voluntary severance. The severance program primarily affects mainline Delta employees. It 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.


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