US airlines cut jobs, capacity
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America’s No 3 airline, Delta Air Lines, is looking to cut 2,000 jobs - 3% of its workforce – as it struggles with high fuel costs, Reuters reported.
It said the carrier will offer voluntary retirement and buyout packages to 30,000 employees.
Delta is looking to cut 1,300 rank and file jobs and 700 administrative and management jobs.
The airline was also quoted saying that it would reduce 2008 domestic capacity by an additional 5% by August, resulting in a 10% year-over-year capacity reduction.
The report said it would achieve this by taking 35-45 mainline and regional jets temporarily out of service.
The Wall Street Journal quoted Chairman and Chief Executive Richard Anderson as saying that fuel prices had jumped 20% this quarter, with costs for this year now projected to be US$900 million above expectations and more than US$2 billion above 2007.
The country’s second largest airline, United Airlines, said it plans to remove 15 to 20 older, less fuel-efficient airplanes from its fleet and may reduce capacity in the face of soaring oil prices, Associated Press reported.
The airline was quoted saying that fuel costs would increase by more than US$1 billion this year.
According to the Wall Street Journal, United Airlines had last week, raised ticket prices by as much as much as US$50 roundtrip. Two other US carriers, Continental and Northwest, have matched the fare increase.
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