Delta Expects Q2 Profit

*NEW YORK (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research) said on Wednesday it expected to post a profit in the second quarter, excluding special items, and plans to cut domestic capacity by 13 percent in the second half of 2008.

Delta, which plans to acquire Northwest Airlines Corp (NWA.N: Quote, Profile, Research), said the predicted domestic capacity cut is larger than the 10 percent reduction the airline forecast in March.

Major U.S. airlines have announced cutbacks as they grapple with unprecedented oil prices, which have doubled in the past year. The carriers have been forced to raise fares, introduce fees, and cut services, jobs and capacity.

In March, Delta unveiled plans to cut 2,000 jobs, offering voluntary retirement and “early out” programs. On Wednesday, Delta said more than 4,000 employees have chosen to take part in the programs.

The airline expects to end 2008 with $3.2 billion in liquidity, down $600 million from December 31, 2007.

Delta said its fuel hedge strategy is expected to offset nearly $1 billion in fuel cost for 2008.*

YEE, no debug!!

Bravo for Delta. Despite all these terrible reductions, it’s good to see that airlines CAN make money in this environment. Lets hope they and other airlines can pull of profits or at least minimize losses.