NEW YORK (CNN/Money) - Delta Air Lines said Wednesday it will cut 6,000 to 7,000 jobs over the next 18 months as part of a "transformation plan" to keep the struggling carrier from declaring bankruptcy.

"We're working hard and fast to avoid it," CEO Gerald Grinstein said in a statement released by Delta (DAL: unchanged at $4.48, Research, Estimates).

The carrier said the plan is aimed at improving its customers' traveling experience while simultaneously targeting more than $5 billion in annual cash savings by 2006.

The plan also includes an employee reward program that includes equity, profit sharing and performance-based incentive payouts. And it will eliminate Dallas as a hub city -- shifting operations there to Atlanta, Cincinnati and Salt Lake City -- which it expects will result in accounting charges.

Delta said it will redesign the Atlanta hub in an effort to both add more flights and reduce congestion. It also plans to add 31 nonstop flights to 19 additional cities and will increase the fleet of its low-cost Song airline by 12 aircraft.

Delta also plans to reduce by four the types of aircraft it flies in an effort to make maintenance less complex.