"Delta Stock Drops Amid Bankruptcy Fears"

Friday, September 24, 2004

Delta Stock Drops Amid Bankruptcy Fears 
By HARRY R. WEBER
The Associated Press


ATLANTA -- Delta Air Lines Inc.'s stock tumbled more than 8 percent to a new
52-week low Friday on persistent worries that the nation's third-largest
carrier is headed toward bankruptcy. 

Meanwhile, the airline's customer service chief said she was leaving, the
latest in a string of executive departures at the financially troubled
company. 

Vicki Escarra, 51, said in a memo to employees Friday that she will be
retiring effective Oct. 1. 

Shares of Atlanta-based Delta fell 31 cents, or 8.7 percent, to close at
$3.26 on the New York Stock Exchange on Friday -- giving the stock the
biggest percentage decline in the Standard & Poor's 500 index for the
session. 

The previous 52-week low for Delta's stock was on Aug. 13, when it closed at
$3.41. The stock has fallen more than 90 percent since the Sept. 11, 2001
terrorist attacks. The day before the attacks, the stock closed at $37.25. 

The stocks of several other major airlines also fell Friday. Shares of
Fort-Worth, Texas-based AMR Corp., the parent of American Airlines, fell 59
cents to close at $7.47, while shares of Houston-based Continental Airlines
Inc. fell 30 cents to close at $8.77. 

Escarra joined Delta in 1973 in the airline's in-flight service division,
where she held several positions. She was named executive vice president for
customer service in 1998 and became chief marketing officer in 2001. 

In June, she was named chief customer service officer. In that role, she was
responsible for airport customer service, reservation sales, in-flight
service, air logistics and customer care. 

Delta, which has warned of the possibility of bankruptcy, also has seen its
former chief executive, chief operating officer and chief financial officer
leave over the last year. 

The airline has been trying to restructure its more than $20 billion in debt
and win $1 billion in concessions from its pilots as part of its turnaround
plan. It also has announced that it is slashing up to 7,000 more jobs over
the next 18 months and shedding its Dallas hub.


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