Delta says unit revenue up, may cut jobs

(Reuters) - Delta Air Lines (DAL.N) on Thursday said unit revenue rose in January as corporate travel continues to be strong, and added it was looking for opportunities to cut headcount in a bid to pare costs.

Delta President Edward Bastian also said the carrier, which acquired Northwest in 2008, expects industry reshaping to continue. He added Delta was looking to developing markets to fuel growth.

"We're looking at industry restructuring in front of us," Bastian told a Raymond James conference that was broadcast over the Internet, noting an announcement from bankrupt American Airlines on Wednesday that it plans to slash 13,000 jobs to cut costs and terminate employee pension plans.

"We expect the industry to continue with the reshaping that we've seen over the course of the last several years," Bastian said.

American parent AMR (AAMRQ.PK), which sought Chapter 11 protection last year, is a potential merger target for rivals. US Airways Group (LCC.N) said last week it is assessing a bid and Delta also is considering one, sources have told Reuters.

Bastian said Delta had strategic opportunities to grow in Latin America and South America, especially. As economic woes crimp activity in Europe, Delta has expanded ties in emerging markets. Last year, it agreed to invest in Brazil's Gol Linhas Aereas and expanded a partnership with Aeromexico.

"I would say right now any growth would probably come from either developing markets which are small but important to us or if the industry leaves any white spots and we opportunistically jump into it like we're doing here at LaGuardia," Bastian said.

Delta said corporate revenue momentum was continuing, adding that its system wide unit revenue in January rose 15 percent from a year earlier, on strength in all regions.

With fuel prices expected to stay high, Bastian said the company was squarely focused on cutting non-fuel costs and garnering more passenger revenue from new sources such as first-class upgrades.

"We're going to be looking at other ways to reduce headcount and we are considering and I'd expect we'll probably be announcing soon another early retirement opportunity for our employees," Bastian added.

Last year, about 2,000 workers took employee buyouts and early retirements Delta offered. The Atlanta-based carrier has about 80,000 workers worldwide.

Shares of Delta were up 2 percent at $11.13 in midday trading. Other big U.S. airlines also rose as oil prices moved lower. The Arca Airline index .XAL was up 1 percent.

(Reporting by Karen Jacobs; Editing by Phil Berlowitz)