United Kingdom
United States
Asia Pacific
Delta slashes thousands of jobs
Delta Air Lines is cutting up to 9,000 jobs or 17% of its workforce to help reduce costs by $3 billion.
In the wake of its move into Chapter 11 bankruptcy protection, the airline says reducing employee and even executive pay will help it return to profitability in two years.
The plan to reduce costs and boost revenues by $3 billion annually by the end of 2007 is on top of the $5 billion cutbacks targeted for next year.
The third largest US carrier says it will cut employees pay by up to 10%, and reduce chief executive Gerald Grinstein’s compensation by 25%.
The airline, which posted losses of almost $10 billion in the past four years, is looking to save $325 million in annual wage and benefit reductions from its pilots.
“Our transformation will be sweeping and fast-paced,” Mr. Grinstein said. “It must be if we are to survive and thrive as a stand-alone company in control of our own destiny.”
Delta has come under pricing pressure from discount airlines such as AirTran and JetBLue Airways expanding in its key East Coast markets, said Bloomberg News.
Delta also plans to reduce its US flight capacity by up to 20%. At the same time, the airline plans to increase international capacity by up to 25% next year.
Delta filed for bankruptcy protection September 14, the same day as Northwest Airlines.
Meanwhile, Northwest is to lay off 1,400 flight attendants between October 31 and January 2006 and 400 pilot jobs in coming months.
Nearly half of US airline seats are now being flown by carriers operating under court protection from creditors.
US airline layoffs this year have reached 44,000, according to outplacement firm Challenger, Gray & Christmas.
Report by David Wilkening
Phil Davies
Mark Jaronski of Explore Georgia on FIFA World Cup 2026
Connecting Small Businesses to Global Tourism Markets: Nate Huff of Tourism Exchange
North Carolina’s Resilience: Wit Tuttell on Recovery and Tourism
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Dozens fall ill in P&O Cruises ship outbreak
BA suspending all Heathrow to Abu Dhabi flights
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel