Delta offers voluntary severance payouts

Delta Air Lines -- the world's biggest carrier --will offer voluntary severance payouts to a majority of the 75,000 employees at Delta and Northwest's mainline operations. Executives said today it's part of a plan to cut an unspecified number of jobs. Chief Executive Richard Anderson and President Ed Bastian said in a memo to employees that the program is similar to one earlier this year that Delta used to trim about 4,000 jobs. Northwest previously trimmed jobs of its own before being acquired by Delta on Oct. 29. The executives say the cuts are necessary because Delta will be reducing systemwide capacity in 2009 by 6 percent to 8 percent because the weak economy has eroded demand for seats on airplanes.

(Associated Press)

Record setting 3QTR earnings for Delta

The nation's third largest airline reports it has posted its highest record earnings ever for the three month period ending September 2007. Thanks to expanded international travel routes, the quarter marks a revenue highpoint for Atlanta-based Delta Airlines.

Delta's net income of the third quarter is 220-million versus 52 million for the same period ending 2006. But, with oil prices hovering around 80 dollars a barrel, Delta's Chief Financial Officer Ed Bastian says the company may be forced to reduce domestic service. "Internationally, where all our growth is going, obviously there's not a lot of alternatives to air travel. So, I think we have much greater opportunity to pass those prices increases through than on the domestic system."

Delta does not plan to buy new planes in the near future, but instead will refurbish its existing fleet.