Delta – Northwest Q Loss

If you still had any doubt about whether Delta-Northwest would be the first and last of the big 2008 merger stories, doubt no more. Here’s the latest from United Airlines Chairman and CEO Glenn Tilton today, in the company’s first-quarter income report:

“The path to sustainable profitability requires us to fundamentally overhaul every facet of our business,” Tilton said. “Consolidation is only one of many changes needed together with capacity discipline, new revenue streams and elimination of assets that do not earn a sufficient return, particularly in this environment. The pressure of high energy prices and a weakening economy are a wake-up call that the pace of change must accelerate.”

To that end, the carrier is eliminating 1,100 jobs this year and plans to further reduce capacity by parking another 30 older narrow-body jets. It also wants to wring another $200 million in savings from its operations this year, double the previous target.