Delta Air Lines Inc. says it will offer voluntary early retirements and buyouts to its employees because it must shrink to cope with high jet fuel prices.

Delta CEO Richard Anderson said on a hot line message to workers on Friday that the world's second-largest airline will cut flying by at least 4 percent starting in September. He said Delta needs to cut costs, such as labor, that go along with less flying. Anderson says Delta needs to think of high fuel prices as a permanent reality for its business.

Oil prices dropped sharply on Thursday, but Anderson says they're still far from a level that would have been considered normal by historical standards.