Delta Air Lines announces USD646m third quarter loss

Airline Industry Information, Oct 20, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Delta Air Lines has announced a large third quarter loss that pushes the airline even closer to bankruptcy and makes striking a deal with its unions and creditors vital if it is to avoid doing so.

The third biggest airline in the US announced a 2004 third quarter net loss of USD646m (USD5.16 per share) compared to USD164m (USD2.90 per share) in the same period in 2003. The airline's shares fell by 3% as the market opened to the news.

Delta Air Lines is currently seeking to restructure its debt and gain concessions from its unions in order to embark on a restructuring plan drawn up by CEO Gerald Grinstein which could save the company USD5bn a year by 2006. The airline has already decided to cut up to 7,000 jobs over the next 18 months and will close its Dallas-Fort Worth airport hub. Analysts have put the airline's chances of avoiding bankruptcy at 50-50, reports Reuters.

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