By James Pilcher
Enquirer staff writer

For the second time in less than a month, Delta Air Lines chief executive officer Gerald Grinstein told employees that deeper cuts will be needed - including from the unionized pilot work group - if the airline is to survive.

Grinstein sent employees a short memo Tuesday that said "it is painfully clear that last year's estimate of the cost savings we will need if Delta is to survive and compete is no longer valid."

"Instead, the hole has deepened during the intervening months," the memo said. On June 8, Grinstein said basically the same thing in a three-page memo to workers.

The most recent statement was issued in response to a USA Today story Tuesday that reported the airline would ask its pilots for concessions worth $1 billion annually, up from the $800 million previously sought.

Airline officials would not comment on that report, which cited an anonymous source. Delta had previously said it was seeking cuts of about 30 percent in total compensation.

The airline has said pilot pay needed to come down, saying it was the highest in the industry and kept the company from being economically competitive. Delta has lost more than $3 billion since Sept. 11, 2001, including $383 million in the first quarter.

In addition to pay cuts, Delta is creating a restructuring plan that could go to the board of directors for approval as soon as late next month.

The pilot union previously countered with an offer of a 9 percent cut, but has said that it would submit a new proposal later this month. It also would not comment on the report of $1 billion in concessions annually.

Delta operates its second-largest hub locally, where it employs more than 800 pilots and about 4,000 workers overall.

The Atlanta-based airline reported a 16.6 increase in traffic in June compared with the same month last year. Delta also reported a 14.6 percent increase in capacity, and an increase of 1.4 percentage points in load factor, or filled seats.

Domestic traffic at Erlanger-based regional subsidiary Comair grew 34.9 percent on a capacity increase of 28.6 percent.

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E-mail jpilcher@enquirer.com