Delta increased the number of aircraft to be taken out of the Delta Connnection system by year end to the equivalent of 100 regional jets, according to CEO Richard Anderson, who spoke to analysts during the company’s second quarter webcast. President and CFO Ed Bastion told analysts that, in addition to the Pinnacle, ExpressJet and Freedom terminations, there will be more announcements forthcoming over the next few months. Related Story  He also pinpointed the profitability failure of 50-seat RJs on long-haul routes, indicating they will be coming out of the Delta Connection system.
The news came as Delta figures show a healthy Delta Connection program, as usual. During the second quarter, Delta Connection operations took in $1.143 billion in operating revenues up from the $1.09 billion in the year-ago period. Contract services expenses, however, were approximately $257 million compared to the $243 million in the Q207. Delta ended the quarter with a $1 billion loss.
For the six months, regional operating revenues reached $2.182 billion compared to $2.056 in the year-ago period. Contract services expenses grew from $486 million in 2Q07 to $511 million in the second quarter this year.
Delta’s fleet includes a total of 84 Bombardier CRJ 100s, of which 22 are owned, 13 leased and 49 on operating lease. Its CRJ 200s total 17, five of which are owned and 12 are on operating lease. It has 15 owned CRJ 700s and 13 owned CRJ 900s, with another eight on order, besides the seven remaining aircraft orders assigned to Pinnacle. Finally it also has 85 options for the CRJ 900. The vast majority of Delta Connection aircraft are owned by regional operators.
How much regionals will be affected by the cuts is unclear pending the resolution of negotiations with Pinnacle and the outcome of the Mesa’s litigation, on behalf of subsidiary Freedom Airlines, against Delta.