Delta revising its business planby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — Delta Air Lines, which has been trying to work out a merger deal with Eagan-based Northwest Airlines, plans to announce a revision of its business plan this week. The move is intended to counter the impact of skyrocketing fuel costs.
In a message to employees, Delta CEO Richard Anderson didn't reveal details of the revised plan. But he indicated the airline could cut unprofitable flights.
Jet-fuel prices have nearly doubled in the past year. But competitive pressures have kept airlines from passing on all their increased fuel costs.
One prominent airline industry analyst forecasts U.S. carriers will lose $4 billion to $9 billion dollars this year.
The impending change in Delta's business strategy follows weeks of fruitless merger talks with Northwest.
Negotiations are on hold because the airlines' pilots can't agree about how to merge seniority lists. But both companies have said they can survive as standalone carriers if no merger occurs.