This is business as usual
Delta warns of loss, possible Chap. 11 filing
By Associated Press | May 11, 2005
ATLANTA -- Delta Air Lines Inc. shares plunged 10 percent yesterday after the nation's third-largest carrier warned it will record a substantial loss for the rest of the year and will need to file for bankruptcy if its cash reserves fall too low or lenders seek immediate payment.
Delta said in a Securities and Exchange Commission filing that it continues to face significant challenges due to high fuel prices and low ticket fares.
Delta said it is considering more cost cuts and potential asset sales. But ''There can be no assurance that we will be able to implement any of these strategies or that these strategies, if implemented, will be sufficient," Delta warned.
Delta, which reported a nearly $1.1 billion loss in the first quarter, had $1.8 billion in unrestricted cash March 31. But the airline said it expects its cash level will be substantially lower by the end of the year if it can't increase revenue, cut costs, sell assets, or restructure debt.