Delta Air Lines projects substantial losses in 2005 - update 2

03/11/05 - newratings.com

NEW YORK, March 11 (newratings.com) – Delta Air Lines (DAL) Thursday announced that it expects to post significant losses in 2005 due to low margins and high fuel prices. It also said a bankruptcy filing remains a possibility.

In a filing with the Securities & Exchange Board (SEB), the company said, "We believe that we will record a substantial net loss in 2005 and that our cash flows from operations will not be sufficient to meet all of our liquidity needs for that period." The number three airline in the US narrowly escaped bankruptcy last year and posted fourth quarter losses of $2.2 billion. The company, despite being faced with severe liquidity problems, announced significant fare cuts for business travelers in January this year. Delta Air Lines said that it currently expects to meet its liquidity needs for 2005, but does not expect to obtain any additional equity financing in the near term.