Atlanta-based Delta Air Lines plans to cut jobs among its salaried employees as its revenue declines, a move that could have significant impact at the company’s headquarters near Hartsfield-Jackson International Airport.
After losing $257 million and seeing a $2.1 billion decline in operating revenues in the second quarter, Delta chief executive Richard Anderson said the company will need to eliminate salaried jobs beyond the management and administrative job reductions of the past 18 months. Those cuts, which totaled about 2,000, came from Delta’s merger with Northwest Airlines and also from open positions not filled.
Anderson did not say how many jobs will be cut in this next round. He said the company will evaluate its management and administrative organization in coming weeks to find areas for cost cuts. The company will also tighten budgets for vendors, marketing and advertising campaigns.
Anderson also said the company saw a more than $3 billion decline in its revenues in the first six months of the year as a result of the global recession, exacerbated by effects from the H1N1 flu virus.
Delta does not expect its revenues to significantly improve during the remainder of this year, he said.
Delta has also cut a total of about 6,000 employees through buyouts last year and this year. “So far, we’ve been able to successfully reduce the number of frontline jobs to match our operations through voluntary programs, but we have to be more aggressive about managing some of our general and administrative costs,” Anderson said.
Separately, Anderson told employees the company is closely watching treaty talks between the United States and Japanese governments on flights between the two countries. Delta opposes continued restrictions of U.S. carriers’ operations at Tokyo’s Haneda Airport, and Anderson said Delta “could be forced to reduce flights to Japan.” Delta acquired a hub at Tokyo’s Narita International Airport through its merger with Northwest.
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