As Delta Air Lines cuts its domestic capacity by 13 percent in the second half of the year, the Atlanta-based carrier expects to generate $200 million in annual savings from the voluntary retirements and separations of more than 4,000 employees.

It also expects to generate a profit in the second quarter excluding special items, including a $95 million charge for the buyout program and a goodwill write-down. But "at these fuel levels, it will be difficult to see a full-year profit," Delta President and Chief Financial Officer Edward Bastian said Wednesday.

With the capacity cuts, Delta is reducing the frequency of flights, cutting back on flying by regional carriers and eliminating some routes, particularly in leisure markets as higher fares drive vacationers to cut back on flying.

In late summer, the airline is cutting a number of routes from Orlando, including flights to Nashville, Tenn.; Key West, Fla.; New Orleans; Raleigh-Durham, N.C.; Birmingham, Ala.; and Columbus, Ohio.

Delta might cut some flights in Atlanta, but "Atlanta is our core strength," Bastian said. "It's our most profitable operation across our system. It's a source of a considerable amount of our international expansion."

The airline is increasing its international flying on the whole, although it is reducing some international flights. "There are some seasonal adjustments being made to international routes," Delta spokesman Kent Landers said. "We'll continue to look at every route to ensure that it is profitable and viable."

Bastian said if fuel levels continue to escalate, Delta might cut capacity further. If that happens, he said, the company will offer voluntary leave programs again.