A tough market and volatile prices have resulted in Delta Airlines turning in a weak set of quarterly figures. The Atlanta-based airline reported a net loss of $257m, while total revenue fell 23 percent to $7bn.

However the losses come against its local rival AirTran Holdings turning in a profit lower fuel costs, and follow shortly after positive results from United Airlines and Southwest.

Richard Anderson, Delta’s chief executive, said: “Over the last year the airline industry has faced its toughest environment since deregulation as the global recession and volatile oil prices have significantly impacted all airlines. This year has been – and will remain – challenging for the industry, as we do not see any meaningful recovery in 2009.”

The losses come despite capacity cuts and synergies savings made through its 2008 merger with rival Northwest Airlines.

Low-cost carrier AirTran reported net income of $78.4m in the second quarter. The company lost $14.8m in the same quarter last year. Revenue fell 13 percent to $603.7m. Operating expenses dropped 27 per cent, to $537.5m.