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Delta Post Big Loss

Delta Air Lines reported a net loss of $1.1 billion and a loss per share of $7.64 for the March 2005 quarter. In the March 2004 quarter, Delta reported a net loss of $383 million and a loss per share of $3.12.

“Today’s financial results clearly are disappointing,” said Gerald Grinstein, Delta’s chief executive officer.Ê “Record-breaking fuel prices are masking the many crucial, large-scale, core initiatives our airline implemented during the quarter. The issue is simple: including fuel, Delta is not on plan, but excluding fuel, we are better than plan.Ê Also, as competitive and cost pressures - including fuel - continue to grow, we are aggressively pursuing opportunities to further reduce our cost structure and also maintain liquidity levels.”

“To date, we have implemented changes in our business to a degree, and at a rate, that has never been done before.Ê By the end of the March 2005 quarter, we had implemented initiatives intended to achieve over 80 percent of our transformation plan targets and expect to implement actions by the end of September 2005 to realize materially all of our targeted benefits,” said Michael J. Palumbo, Delta’s executive vice president and chief financial officer. “However, historically high fuel prices are a significant challenge, defining the need for even more change.”Ê