Delta Air Lines reveals job cuts

In the face of increasing fuel prices, Delta Air Lines has revealed plans to cut 2,000 jobs and scale back flights.

Delta, which is America’s no. 3 airline, has been unable to reach an agreement with rival Northwest Airlines Corp. It will offer voluntary retirement and buyout packages to 30,000 employees.

The troubled airline company is looking to shed 1,300 rank and file jobs and 700 administrative and management jobs, this represents approximately 3% of its workforce.

Ed Bastian, Delta’s Chief Financial Officer, referring to the cost-saving plan, said if we need to, we’ll go deeper.

The airline also announced it will to cut flights in the US, aiming to reduce 2008 domestic capacity by an additional 5% by August, resulting in a 10% year-over-year capacity cut.

For the last 2 months, Delta has been looking actively at mergers but hopes for a deal with Northwest Airlines took a blow yesterday as Delta’s pilot union said it could not reach agreement over seniority with pilots.

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