Jakarta –
The giant United States (US) airline, Delta Airlines, is reportedly carrying out layoffs (PHK). The company did this in the midst of the aviation industry’s struggle with rising fuel and labor costs.
Reporting from CNBC International, Thursday (2/11/2023), Delta did not specify how many jobs would be reduced. The company also said the move does not impact frontline workers such as pilots or flight attendants.
“While we are not yet back to full capacity, now is the time to make adjustments to programs, budgets and organizational structures across Delta to achieve our stated goals, one part of this effort includes adjustments to corporate staffing to support these changes,” said company in a statement to CNBC.
“These decisions are never made lightly, but always with caution and respect for our impacted team members and the Delta family,” he continued.
The company did not specify how many jobs would be cut. However, a company spokesperson said that the move was only a small-scale adjustment for some company employee and management positions.
Meanwhile, quoted by Reuters, this cut comes after the company said the previous day that it would cancel flights between Tel Aviv and New York until November 21, amid increasing tensions in the Middle East.
In October, the company also cut its full-year profit forecast due to rising fuel costs. Rising fuel prices are expected to increase Delta’s costs by US$ 400 million in the second half of this year.
On the other hand, executives themselves have recently reported strong travel demand that could help them more than cover costs. Delta posted a profit for the third quarter of 2023 of US$ 1.1 billion, up almost 60% from the previous year. However, higher operating costs have reduced its profits.
“Growth normalizes next year, and we expect operational reliability to continue to improve,” Delta CFO Dan Janki said on an earnings call last month.
“This will allow us to optimize the way we run the airline, reducing operational constraints and eliminating inefficiencies resulting from the intensity of the rebuild,” he added.
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(shc/rrd)
2023-11-02 04:06:00
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