ATA Airlines reports worsened financial position

Airline Industry Information, Oct 21, 2004

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

ATA Airlines told investors on 20 October 2004 that the 10% pay cut taken by its flight attendants is not sufficient to curb the airline's growing cash flow problems.

The airline said in a filing with the US Securities and Exchange Commission that its financial situation had deteriorated since its previous filing on 16 August 2004 when it said that it would run out of cash by early 2005 and that it might have to sell some assets.

Shares in the airline fell 22% to a new 52-week low after the announcement.

On 19 October 2004 credit ratings firm Standard & Poor's had reduced the company's investment rating to CCC- which is below investment grade, reports The Associated Press.

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