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Delta to cut more than half its staff

About 30,000 workers can get payouts. Fuel costs are forcing many airlines to economize.

ATLANTA - Delta Air Lines Inc., faced with a weak economy, dimming hopes of a combination with Northwest Airlines Corp., and record fuel prices that are devouring profits, said yesterday that it would offer voluntary severance payouts to roughly 30,000 employees - more than half its workforce - and cut U.S. capacity by an extra 5 percent.

Executives at Atlanta-based Delta said in a memo to employees that the airline's goal is to cut 2,000 frontline, administrative and management jobs through the severance program, attrition and other initiatives.

The announcement came the same day US Airways Group Inc., Philadelphia's dominant carrier, and United Airlines said they would cut capacity. US Airways will reduce capacity for 2008 an additional 2 percent to 3 percent, on top of initial plans to trim 1.5 percent, president Scott Kirby said yesterday. And United planned to ground as many as 20 airplanes, or 4 percent of its fleet, and further cut capacity in 2008 to soften the blow of soaring oil prices that could add $1 billion to its fuel tab over last year.

Delta spokeswoman Betsy Talton said the carrier would accept more job cuts if more employees than its goal took the voluntary severance. The severance program will not affect Delta pilots, who have a union contract with the company, and employees at Delta regional carrier Comair Inc.

One part of the program is for employees who are already eligible for retirement or for those whose age and years of service add up to at least 60, with 10 or more years of service. The other part is an "early-out" offer for frontline employees - such as flight attendants, and gate and ticket agents - with 10 or more years of service and for administrative and management employees with one or more years of service.

Delta had 55,044 total full-time employees as of the end of last year. Delta, since 2001, had previously announced it would cut up to 33,000 jobs.

Delta now has 22 weekday flights from Philadelphia International Airport, to Boston and its hubs in Atlanta, Cincinnati, and Salt Lake City. The airline has increased its service from Philadelphia since last spring, when it had an average of 17 flights a day to the same cities.

Delta said that in the last three months, fuel prices have climbed nearly 20 percent and its 2008 fuel bill is now expected to increase more than $2 billion over 2007.

The memo from chief executive officer Richard Anderson and president Ed Bastian did not mention Delta's talks with Northwest about a combination that would create the world's largest airline.