Delta Posts USD$326 Million Loss

Oct 15, 2002

The first of the US major carriers to report third quarter results, Atlanta-based Delta Air Lines, has posted a net loss of USD$326 million.

To cut its costs, the airline now intends to ground its MD-11 fleet and defer the delivery of new aircraft over the next two years in an effort to reduce capital expenditure by USD$1.3 billion.

"Clearly, today's results are disappointing. Our industry is experiencing unprecedented financial challenges," said Leo F. Mullin, Delta's chairman and chief executive officer.

"As we have done for the past year, Delta will maintain tight control of all facets of our business and make the difficult but necessary decisions to ensure that our airline makes it successfully through these challenging times," he said.

Other measures announced were a continued review of loss making routes, including the cancellation of flights to Rio de Janeiro and Buenos Aires, and the implementation of new customer service technology in airports that provides an increase in productivity.

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