NYTimes.com Article: Delta Air Lines to Cut Up to 8,000 More Jobs

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Delta Air Lines to Cut Up to 8,000 More Jobs

October 18, 2002
By THE ASSOCIATED PRESS






By The Associated Press

Delta Air Lines told employees yesterday that it was
cutting 7,000 to 8,000 more jobs in an effort to stem
financial losses.

The chief executive, Leo F. Mullin, told employees that he
hoped many of the reductions, which will include
management, could come through voluntary leave, early
retirement and severance programs.

With the latest cuts, Delta has eliminated 21,000 jobs, or
25 percent of its work force, since the terrorist attacks.
The cuts come two days after Delta posted a third-quarter
loss of $326 million and said it did not see any
improvement soon.

Most airlines releasing third-quarter results this week
have reported losses, citing weak demand and higher costs.

The four large airlines that reported earnings yesterday -
Continental Airlines, Northwest Airlines, Southwest
Airlines and America West - lost a combined $39 million.

Southwest, which reported a third-quarter profit of $75
million, warned that its streak of 46 quarters of
profitability could come to an end in the fourth quarter.

Southwest, based in Dallas, earned 9 cents a share in the
quarter, down from $151 million, or 19 cents a share, a
year earlier.

Revenue was $1.39 billion, compared with $1.34 billion in
the quarter last year, which included the terrorist attacks
and a shutdown of the aviation system.

Excluding a one-time gain of $48 million, Southwest said it
earned $50.5 million, or 6 cents a share. On that basis,
analysts surveyed by Thomson First Call had expected the
carrier to earn 5 cents a share.

Continental Airlines, the Houston-based carrier, lost $37
million, or 58 cents a share, in the quarter. The loss was
in contrast to a profit of $3 million, or 5 cents a share,
a year earlier, when Continental received federal aid.
Analysts surveyed by Thomson First Call had expected a loss
of 74 cents a share. Revenue fell to $2.18 billion, from
$2.22 billion a year earlier.

Northwest Airlines, based in Eagan, Minn., reported a net
loss yesterday of $46 million or 55 cents a share for the
quarter, in contrast to a gain of $19 million, or 20 cents
a share, a year earlier. Analysts at Thomson First Call
expected a loss of 82 cents a share.

Revenue dropped to $2.56 billion, from $2.59 billion a year
earlier.

The America West Holdings Corporation, based in Tempe,
Ariz., the parent of the airline, reported a third-quarter
loss of $31 million, or 92 cents a share, in the quarter.
The airline lost $31.7 million, or 94 cents a share, a year
earlier. Analysts surveyed by Thomson First Call expected a
loss of $1.01 a share.

Third-quarter revenue rose 6 percent, to $520 million,
compared with $491 million a year ago.

http://www.nytimes.com/2002/10/18/business/18AIR.html?ex=1035945428&ei=1&en=bb53888d7349ca80



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