Execs Blame Economy... And Obliquely Warn Of Future Job Cuts

Citing the familiar refrain of a "global economic recession and weaker demand for air travel," on Tuesday management at Delta Air Lines confirmed to its workers what practically everyone in the airline industry saw as a foregone conclusion: the newly-merged carrier will reduce flights and cut systemwide capacity at both Delta and Northwest.

In a message to the combined airline's 75,000-member workforce -- a number touted by airline execs -- Delta CEO Richard Anderson and President Ed Bastian announced that systemwide 2009 capacity will be down 6-8% year over year. Domestic capacity will be down 8-10% and international capacity will be down approximately 3-5%. These numbers include the full impact of previously announced 2008 capacity reductions.

"Delta has established itself as an industry leader. Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand," read the employee memo. "These economic hurdles are difficult, and we remain committed to building our company on a durable financial foundation with industry-leading liquidity.

"Remember that speed wins so we will be decisive and not delay," they continue. "As Rules of the Road states, 'Speed in execution is the difference between success and failure.'"

Both execs hastened to add that "even with the economic recession, we are achieving significant benefits from our merger and will continue to do so. The merger has allowed us to develop growth opportunities as we connect the networks to create new revenue streams neither airline could have achieved independently.

"We will continue to follow the Flight Plan to invest in and further diversify our international network in the Pacific, Africa, India and the Middle East to help mitigate the risk from specific regional economies. We will remain focused on, and continue to adapt to, the rapidly changing global economy to better align supply with demand."

Bastian and Anderson stressed to employees the capacity cuts are necessary "to secure your careers and return us to sustained profitability..." but then hedged their bets.

"In the meantime, we are analyzing the impact on staffing as it pertains to these capacity reductions and, as in the past, we will offer voluntary programs to adjust staffing needs. We will continue to make decisions that are in the long-term interest of our colleagues, customers, shareholders and the communities we serve."

Translation: anyone want to bet how many of those 75,000 jobs will still be around next year?

FMI: www.delta.com