Delta Air Lines said on Wednesday it expected to post a profit in the second quarter, excluding special items, and plans to cut domestic capacity by 13 percent in the second half of 2008.
Delta, which plans to acquire Northwest Airlines, said the predicted domestic capacity cut is larger than the 10 percent reduction the airline forecast in March.
Major US airlines have announced cutbacks as they grapple with unprecedented oil prices, which have doubled in the past year. The carriers have been forced to raise fares, introduce fees, and cut services, jobs and capacity.
In March, Delta unveiled plans to cut 2,000 jobs, offering voluntary retirement and "early out" programs. On Wednesday, Delta said more than 4,000 employees have chosen to take part in the programs.
The airline expects to end 2008 with USD$3.2 billion in liquidity, down USD$600 million from December 31, 2007.
Delta said its fuel hedge strategy is expected to offset nearly USD$1 billion in fuel costs for 2008.
Later on Wednesday, Delta's chief financial officer Ed Bastian said that Delta will look at cash-raising opportunities, but he had nothing to announce as yet.
"We are continuing to explore opportunities in the capital markets," said Bastian.
Delta shares closed down almost 5 percent at USD$5.45 on Wednesday.
