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Delta Air Lines expects to cut about 800 to 900 employees through an early retirement offer.
The offer isn’t driven by financial distress, as the Atlanta carrier posted a strong quarterly profit on Wednesday. Mike Campbell, Delta’s executive vice president of human resources, said employees had asked for a new early retirement offer and Delta decided to go ahead because new health insurance exchanges make it easier for them to get coverage after leaving the company.
Employees who leave can get short-term health insurance assistance while moving to new coverage. The program is voluntary and hiring will continue as needed, according to Delta, which has about 80,000 employees.
Separately, CEO Richard Anderson said Delta’s decision this week to halt service to Israel until further notice was made independent of the Federal Aviation Administration. The FAA on Tuesday put in place a 24-hour flight ban to Israel, then on Wednesday extended that for another 24 hours.
“We have a duty above and beyond that to make the best decisions” for passengers and employees, Anderson said. “Even if they lift the [ban] we still may not go in.” He said Delta routinely designates its own no-fly zones, including Iran, Iraq, Syria, Afghanistan, Ukraine and North Korea.
The comments came during a conference call discussion of quarterly financial results. The airline said healthy corporate travel, strong demand in the U.S. and its focus on the New York and Seattle markets brought in more revenue, offsetting weakness in the Pacific.
Glen Hauenstein, executive vice president of network planning, said Atlanta, where Delta has its main hub, is “starting to grow again.”
“That’s a good thing for Delta, seeing the Atlanta economy turn around,” Hauenstein said.
Delta reported an $801 million profit in the second quarter, up 17 percent from a year earlier. Operating revenue rose 9 percent to $10.6 billion. Airlines have been raising fares due to strong demand, and Delta expects unit revenue to continue to increase this quarter.
Delta also reported an $13 million profit at its Trainer refinery in Pennsylvania. The carrier took the unusual step of buying its own oil refinery in 2012 and had struggled to bring it to consistent profitability.
The early retirement offer extends to workers of certain ages and seniority, excluding pilots and some management. It includes a severance payout and retiree travel benefits, in addition to short-term health insurance assistance.
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