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"Delta Airlines May File Bankruptcy Soon-Report"
Saturday, October 23, 2004
Delta Air May File Bankruptcy Soon-Report
WASHINGTON (Reuters) - Delta Air Lines Inc. could file for Chapter 11
bankruptcy protection as soon as next week, the Washington Post reported in
its Saturday edition, citing an unnamed source familiar with the situation.
The troubled airline could file as early as Wednesday or Thursday, according
to the article on the newspaper's web site. But a filing could be delayed if
the airline is able to obtain $1 billion in pay and benefit cuts it has
sought from its pilots.
A company spokeswoman told Reuters that the company plans to do whatever it
can to avoid filing for bankruptcy protection.
"Given Delta's financial situation, there is no question that we are in a
race against time, but we are doing every thing possible to do what we can
outside of bankruptcy," Delta spokeswoman Patsy Mulcahy told Reuters.
Still, even if pilots agree on the concessions, a Chapter 11 is likely, the
Earlier this week, the troubled carrier reported a third quarter net loss of
$646 million, or $5.16 a share. The four hurricanes that struck the U.S.
crippled a significant portion of Delta's southeastern operations during the
quarter, resulting in an estimated revenue loss of about $50 million.
In addition, operating expenses for the September 2004 quarter increased
14.9 percent from the same period a year ago, primarily because of a 63.1
percent hike in fuel costs, the company said.
Delta's bankruptcy filing would mark it as the third U.S. carrier operating
under Chapter 11 at the same time. That hasn't happened among the top 10
domestic airlines since 1992, the Post wrote.
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