Delta Air Lines Initiates Corporate Staff Layoffs to Counter Rising Costs

Delta Air Lines (DL), based in Atlanta, is implementing staff layoffs within its corporate ranks as part of cost-saving measures in response to escalating expenses, including fuel and labor, as reported by CNBC International.

Despite reporting strong travel demand and a third-quarter profit of USD1.1 billion, representing nearly a 30% increase from the previous year, Delta is undertaking “small adjustments” to positions in corporate and management roles. Front-line workers, such as pilots, flight attendants, and mechanics, are reportedly unaffected by these measures.

Delta Air Lines provided a statement to ch-aviation, stating, “As Delta plans for 2024 and beyond, we continue evolving our business to better manage costs and set Delta up for success.” The airline acknowledges the need for adjustments to programs, budgets, and organizational structures to align with its goals. The statement highlights that Delta refrained from making frontline layoffs during the pandemic and is not pursuing such measures now.

In its third-quarter financial results, Delta projected full-year revenue growth of 20% over 2022, with pre-tax earnings expected to exceed USD5 billion, nearly double the prior year’s earnings. Operating expenses, totaling USD13.5 billion, included non-fuel costs of USD9.2 billion and fuel expenses of USD3 billion, indicating a 10% year-over-year reduction.

Chief Financial Officer Dan Janki mentioned in an October earnings call that the company anticipates a return to normal growth next year and expects operational reliability to improve. This improvement is expected to enable the airline to optimize operations by reducing buffers and eliminating inefficiencies that emerged during the intense rebuilding period following the COVID-19 pandemic.

Delta’s move to lay off corporate staff underscores the ongoing challenges faced by the aviation industry, with airlines seeking to balance profitability and operational efficiency in a dynamic and evolving market landscape.