Bastian said Tuesday that he would not be able to provide details on the consolidation discussions. He said the process Delta's board is conducting to review strategic alternatives is "fluid."

Salt Lake County Mayor Peter Corroon and Salt Lake City Mayor Ralph Becker were on the Air Transportation Promotion Alliance, a committee of community and business leaders brainstorming ways to keep the hub at the Salt Lake airport in the case of a Delta merger.

"We're hoping (merger) discussions will get back on track," Corroon said. "We realize, based on fuel prices and downtown in the national economy, they're having tough times."

In the Tuesday memo to Delta employees, the Delta executives said that in the past three months, fuel prices have increased by 20 percent, "and our 2008 fuel bill is now expected to increase by nearly $900 million, compared to our business plan."

Anderson and Bastian wrote that the strategy at Delta is to grow with international flights, which have higher fares and fuel surcharges that are more easily accepted.

"It's never a good sign when we reduce flying," said Salt Lake-based pilot Mike Dunn. "But the company's trying to maximize on the profitable routes and minimize the least profitable routes to offset fuel prices."

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E-mail: lhancock@desnews.com