Delta Air Lines yesterday warned it would cut about 10 per cent of its workforce, or between 6,000 and 7,000 jobs, as part of a wider effort to achieve $5 billion (€4.1 billion) in annual savings by the end of 2006.
The move comes after a strategic review, which includes the most extensive restructuring of a route network and airport hubs undertaken by a big US airline.
Mr Gerald Grinstein, chief executive, said: "We will restructure 51 per cent of our network by January 31st 2005, resulting in the largest transformation in our schedule in Delta's history. . . this is probably the biggest transformation plan of any carrier in recent time."
Mr Grinstein said the job cuts would be made over the next 18 months. He said that by the end of the year Delta would have reduced annual costs by $2.3 billion since 2002, leaving $2.7 billion in savings still to be achieved.
Delta is in talks to save $1 billion from a new pilot wage contract.
The rest of the savings could come from the job cuts, a 15 per cent reduction in administrative costs, reduced compensation across Delta and a rise in shared healthcare benefit costs.
Mr Grinstein warned, however, that bankruptcy was still a possibility. "If the pilot early-retirement issue is not resolved before the end of this month, and all the other pieces do not come together in the near term, we will be required to restructure through the courts."
