Delta Air Lines Cancels Services

Delta Air Lines (NYSE:DAL) said today it is making a strategic business decision to cancel its daily, nonstop service from Atlanta to Buenos Aires and from Atlanta to Rio de Janeiro. The last southbound flights will operate on Nov. 30, 2002, and the last northbound flights will operate on Dec. 1, 2002. Delta will continue to operate its daily nonstop service between Atlanta and Sao Paulo, Brazil.

Subodh Karnik, senior vice president - Network and Revenue Management, said, “Lower demand for air travel worldwide and the continued weak U.S. and global economy has resulted in significant financial losses for these services. We have concluded it is better to focus our resources on those markets where we can be most competitive and realize the greatest revenue generation opportunities.

“We do not cancel service without giving great consideration to the impact on the communities involved. However, we do not see market conditions becoming favorable in either market in the next 12 months,” he said. “The people of Delta are our most important asset and we value their efforts and abilities. The closing of these two stations is not a reflection on their dedicated service, but is a necessary step that Delta must take.”

Delta began daily service between Atlanta and Buenos Aires in April 2001, and started service between Atlanta and Rio in June 1997.

In discussing Delta’s future Latin American strategy, Karnik said, “Delta remains committed to the Latin America region. We are always looking for opportunities and evaluating market potential. Buenos Aires and Rio de Janeiro are key markets in Latin America. We will continue to assess the market potential for both.”

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