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Delta responds to worsening global economy

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Delta Air Lines today issued the following memo to its more than 70,000 employees worldwide from CEO Richard Anderson and President Edward H. Bastian.

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Delta Air Lines today issued the following memo to its more than 70,000 employees worldwide from CEO Richard Anderson and President Edward H. Bastian.

“The worsening global economy continues to place additional pressure on the
airline industry. In just the few months since we last announced capacity
reductions, revenues have weakened, particularly in international markets.
Once again, we must move quickly to adjust our capacity and stay in front
of demand changes.

“This morning at an investor conference in New York, we will announce plans
to reduce international capacity an additional 10 percent beginning in September. These reductions will be targeted to areas where we’ve seen the most
revenue weakness – the Atlantic and Pacific networks. Trans-Atlantic
capacity this winter will be down 11 – 13 percent and trans-Pacific down 12 – 14 percent, compared to winter 2008. To achieve these capacity changes, we will exit low-performing markets, down-gauge certain routes, adjust frequencies, and move some markets to seasonal service.

“We remain focused on our goal to build a diversified, profitable worldwide
network. To this end, even as we reduce our Atlantic and Pacific capacity,
our Latin America capacity will be up slightly in the fourth quarter, as
we take advantage of targeted growth opportunities through new routes and
increased frequencies.

“These reductions are in addition to the December announcement to reduce
systemwide 2009 capacity by 6 – 8 percent year over year. As a result of the
voluntary programs just concluded, nearly 2,100 of our colleagues will be
voluntarily leaving over the next several months. While these voluntary
reductions met our overall target, there are certain positions and
geographic locations where we fell short of achieving the goals of the
voluntary programs. With the additional capacity reductions noted above,
we again must reassess our staffing needs. As in the past, voluntary
programs are always our first consideration to adjust staffing needs.

“Our merger provides the silver lining to these turbulent economic times as we begin to see tangible evidence of the benefits of our integration and
understand how the merger positions Delta ahead of our competitors. Above
all, your focus on executing the Flight Plan and providing superior
customer service is our most prized attribute.

“We will continue to make decisions that are in the long-term interest of employees, customers, shareholders, and the communities we serve. Remaining focused on our 2009 Flight Plan will be key to our success. This will require teamwork from all divisions and departments working toward this common goal. Thank you for the incredible work you do for our customers every day. Together, we are building a stronger Delta.”

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Editor in chief is Linda Hohnholz.