Delta To Cut 7,000-8,000 Jobs

October 17, 2002

Delta Air Lines announced is cutting 7,000 to 8,000 more jobs to try to stem dramatic financial losses.

Chairman and CEO Leo F. Mullin told company employees Thursday that he hoped many of the job reductions, which will include management, could come through voluntary-leave, early retirement and severance programs. If there are not enough volunteers for these programs, the company will lay off workers.

Since the terrorist attacks, Delta has slashed 13,000 jobs -- 2,000 through layoffs and the rest through early retirement or voluntary leave.

The Atlanta-based carrier posted a third quarter loss Tuesday of $326 million and said it did not see any improvement coming in the near future.

"In the current environment, with a high number of available seats and a low level of passenger demand, traffic continues to be stimulated primarily by fare sales that have driven revenue down to levels last seen in 1995," Mullin said in a memo to employees. "Until demand returns and business conditions otherwise improve, Delta's survival and our potential for future success requires that we maintain tight control of all facets of the business."

Delta announced earlier this week that it is further reducing costs and capacity by grounding its MD-11 fleet and deferring all mainline aircraft deliveries in 2003 and 2004.

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