Delta Airlines

[Rollingthunder]

Delta Air Lines shares dip on bankruptcy warning - update 1

Thursday, May 12, 2005 9:25:34 AM ET
newratings.com


NEW YORK, May 12 (newratings.com) – The share price of Delta Air Lines Inc (DAL.NYS) declined to its lowest level in more than 32 years on Wednesday, fuelled by the company's forecast of substantial losses for the remainder of 2005 and possible bankruptcy.

The US-based airline said in a regulatory filing on Tuesday that the high fuel prices and intense competition from low airfares are likely to lead to substantial losses at the company in the final nine months of this year. Delta Air Lines said that its cash flow from operations would not be sufficient to meet all its liquidity needs for the remainder of this year. The company indicated that it does not expect to achieve its target of $5 billion in cost savings until the end of next year. Delta Air Lines said that it is considering various measures to keep itself afloat, including additional cost reductions and potential asset sales. The company warned, however, that even these measures might not be sufficient.



We just took on a heavy maintenance contract for their A320s and B757s. Could have been a bad decision.

[stagn8]

DL are I think the last major US carrier to operate only US aircraft, they don't have any Airbus aircraft, so if you are doing DL A320's you've been had by somone !!

As I sat in a TK A340 5 mins ahead of a DL 767 IST/JFK t'other day I was musing over DL's problems - my TK fare was $1000 cheaper (in Y class) than DL's, I had more legroom, a free bar, plus young and attentive cabin crew who turn up within seconds of a call light being pressed (not a feature in DL's Y cabin), and I won't even talk about the state of T2 at JFK !! How can US majors compete ? If you consider an airline seat is a commodity, like trainer shoes or hard drives, these are made overseas and imported before being sold to the US public by a retailer. So is this the future of airline seats ?

[Rollingthunder]

Yup, my mistake, no Airbuses.

"Air Canada Technical Services announced it has secured an agreement with Delta Air Lines for the maintenance, repair and overhaul (MRO) of the Atlanta-based airline’s fleet of more than 200 Boeing 757-200, 767-300 and 767-300ER aircraft."