Will Trim Service Between Non-Hub Airports

If you fly Delta Air Lines... plan on spending some time in Atlanta or Salt Lake City on your next trip cross-country. Following in the footsteps of its likely merger partner, Northwest Airlines, on Wednesday Delta Air Lines announced it plans to more sharply reduce capacity this year, now by as much as 13 percent.

The Dallas Morning News reports the airline is taking the step to fight ever-increasing fuel costs. Delta announced earlier this year it planned to trim capacity by 10 percent in 2008, largely by grounding less-efficient aircraft used primarily on less-profitable domestic routes.

"Delta has been a first mover to aggressively respond to the challenges facing our industry with domestic capacity cuts, associated cost reductions, and a focus on preserving liquidity," Delta president and chief financial officer Ed Bastian said.

Bastian's comments came ahead of a Merrill Lynch conference Wednesday, where a number of airline executives spoke.

Delta said most of its capacity cuts will focus on routes that both originate and end at non-hub airports for the airline. Routes to be cut include flights between Orlando, FL and Nashville, TN; Las Vegas and Los Angeles; and Boston and Jacksonville, FL, among several others.

Bastian said his airline is taking steps now to cut flights, in hopes the carrier can still earn a profit. Delta expects to report a profit in the second quarter, excluding special items -- which include costs related to both its prior bankruptcy and Delta's preparations towards joining with Northwest. Most analysts expect Delta to post a modest six cents-per-share profit... not very much, but more than a lot of its competitors can manage.

Though not widely reported, capacity cuts announced this week by both Delta and Northwest also serve to better integrate both carriers' route networks, should regulators approve the Delta/NWA pairing later this year.

As ANN reported, Northwest announced Tuesday plans to cut its domestic and international capacity by 9.5 percent by the end of the year. The airline also plans to ground 14 Boeing 757 and Airbus A319 aircraft, as well around 30 of its aging DC-9s.

FMI: www.delta.com