Northwest Airlines Corp’s (NWA) deal to merge with Delta Air Lines Inc. (DAL) is a mechanism to keep the airlines afloat according to Chief Executive Doug Steenland. He said that he expects the merger to be completed by the end of this year. This merger would also help Northwest Airlines to cope with the skyrocketing cost of jet fuel.

Earlier on Tuesday Northwest said it will reduce its fleet by 47 jets and drop flights and will also reduce its work force with “voluntary separation programs” before dismissals. “Unprofitable flying” will be dropped, Chief Executive Officer Doug Steenland said. At the same time he said that Northwest will continue expanding internationally.

Shares tumbled by down 1.6% at $6.67 after hours.

14 Boeing Co. and Airbus SAS narrow-body jets, along with 33 Boeing DC-9s are going to be removed from the Northwest’s fleet. The retirement of three cargo freighters has also been hastened.

The payrolls in the industry will further decrease once Northwest and American, the airlines that haven’t specified their job cuts, will reveal their details. American has hinted that its job cuts would be in thousands.

According to some analysts, the U.S. airlines should decrease their collective capacity by 20% to cope up with the cost price, to stabilize the industry and to raise the fares further.

To a customer, such changes would mean higher fares, fewer flights, substitution of smaller regional aircraft on some routes and some dropped overseas routes.