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SALT LAKE CITY -- Delta Air Lines is worried about the future but still has no plans to make cuts in Salt Lake City.
Thursday Delta President Ed Bastian said it will reduce capacity by 10 percent this year compared to 2008. That is up from previous plans to cut system capacity by 6 percent to 8 percent.
Delta also will reduce international capacity 15 percent, up from a previous plan to cut it by 10 percent. The capacity reductions will begin in September.
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Airline passengers could get a 1-2-3 punch
Corporate travel and ticket sales of premium seats are down. Overall demand is weak. And fuel prices are rising again. The one-two-three punch could be bad news for consumers this fall.The reductions mean staffing levels will be reassessed. But Delta spokesman Anthony Black says they are expected to have no impact for Delta's Salt Lake hub.
Delta warned that more than $6 billion in benefits it expected from previously lower fuel prices, its merger with Northwest Airlines and previous capacity reductions will be overtaken by declining revenues.
The airline blames jet fuel prices, which have risen 20 percent since the first of the year.
Also, fears over H1N1 virus are hurting demand. Delta projects it will take a $125 million to $150 million revenue hit in the second quarter because of the impact on air travel from the swine flu virus.
Story compiled with information from Andrew Adams and The Associated Press.
