$300 million loss in January

[Deleted by Moderator]

LOS ANGELES, March 2 (Reuters) - Bankrupt airline Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) on Thursday said it lost $300 million in January, bringing the total of its losses in the last four reported months to $1.5 billion.

The No. 3 U.S. airline, which filed for Chapter 11 bankruptcy protection in September, said $87 million of the $300 million loss was for bankruptcy reorganization costs, chiefly related to aircraft and facility leases and legal expenses.

The loss is slightly less than the $314 million net loss in January last year. It comes on top of Delta's fourth-quarter net loss of $1.2 billion. For full-year 2005, Delta's net loss was $3.8 billion.



Atlanta-based Delta has said it needs about $3 billion in revenue increases and cost savings to survive and exit bankruptcy. The carrier is in the process of renegotiating its aircraft leases and cutting labor costs, among other things, to achieve those goals.

Delta said on Thursday it had $2.1 billion of unrestricted cash on its balance sheet, up from $2 billion at the end of the last quarter.

The airline, which has been battered by high fuel prices and competition from low-cost carriers, also said that in February it hedged about 26 percent of its planned jet fuel consumption for the month at the average price of $1.75 per gallon, and would do more hedging as required to help manage costs.


© Reuters 2006. All Rights Reserved.

 

[tadjr]

The airline, which has been battered by high fuel prices and competition from low-cost carriers, also said that in February it hedged about 26 percent of its planned jet fuel consumption for the month at the average price of $1.75 per gallon, and would do more hedging as required to help manage costs.

I thought airlines in bankruptcy couldnt hedge. That seemed to be the common line over on the US board every time someone asked that question. What gives?

 

[Flufdriver]

When your still losing 10 million a day, things must be different!! WT, wheres the spin? 🙁

 

[WorldTraveler]

no spin. DL said they don't expect to become profitable until 2007. There's no spin w/ that. The company has said they are on track with their plan. I will remind you that no other airline has been profitable at this point in their bankruptcy process so expecting DL to do any different is a little out of touch with reality. Heck, I know an airline that spent 3+ years in bankruptcy, chose to exit, and is still not profitable. I don't think you'll see DL choose that path.

DL did get BK court approval to hedge. Creditors are confident enough in the DL's ability to turn things around that they would rather give mgmt the ability to attempt to control some fuel costs than continue to watch them bleed cash.

 

[Deleted by Moderator]

Heck, I know an airline that spent 3+ years in bankruptcy, chose to exit, and is still not profitable. I don't think you'll see DL choose that path.

Do you have a link to that? United hasn't released the first month out of bankruptcy financial report yet, right? Therefore you have NO idea if they aren't profitable yet, correct? Your DL spin is priceless!! 😀

 

[Bear96]

I don't think you'll see DL choose that path.

If airlines have so much "choice" in matters like that, why did DL "choose" the insolvency path at all?

 

[NewHampshire Black Bears]

no spin. DL said they don't expect to become profitable until 2007. There's no spin w/ that. The company has said they are on track with their plan. I will remind you that no other airline has been profitable at this point in their bankruptcy process so expecting DL to do any different is a little out of touch with reality. Heck, I know an airline that spent 3+ years in bankruptcy, chose to exit, and is still not profitable. I don't think you'll see DL choose that path.

DL did get BK court approval to hedge. Creditors are confident enough in the DL's ability to turn things around that they would rather give mgmt the ability to attempt to control some fuel costs than continue to watch them bleed cash.

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WT,

Then WHAT path do you see DL traversing ??

I believe strongly, that you believe that DL will NOT "Risk" throwing out DALPA's contract., AND, if the arbitraitor's decision does'nt get DL the $$$$$ it Deseratly needs, then IMHO, you and I will see DRASTIC "non-union" cuts(from folks who HAVE already given their fair share)

What can I say, It's a TOUGH unforgiving business !!!

NH/BB's