Delta loses $5.2B in '04, Q4 loss sets record
A carrier that serves all three, major South Florida airports has posted the largest loss in its history for the fourth quarter.


Delta Air Lines said it lost $2.2 billion for the period. That's part of a $5.2 billion net loss for the year.

Included in the fourth quarter woes were a $1.4 billion, non-cash charge due to $1.9 billion in goodwill impairment at its regional subsidiaries Comair and ASA, a $194 million charge for job cuts and a $120 million settlement charge related to Delta's pilot pension plan.

The period did have some financial upside, though. Delta (NYSE: DAL) saw a $527 million gain from eliminating health care coverage subsidies for retirees, a $123 million gain from the sale of Delta's stake in online travel firm Orbitz and a $114 million tax benefit from reduced deferred tax allowances due to its charges.

During a call with analysts, Delta officials said the recent shut-down of Comair's operations in Cincinnati over Christmas -- blamed on a massive computer failure -- cost the carrier about $20 million.

For the year, Atlanta-based Delta lost $5.2 billion, or $41.07 a share, on revenue of $15 billion. The year before, the company reported losing $773 million, or $6.40 a share, on revenue of $14.1 billion.

Delta has accumulated more than $8.5 billion in net losses since 2000.

Delta Chief Executive Officer Jerry Grinstein said high fuel prices and weak ticket prices led to "another quarter of disappointing results."

The numbers show the difficulties the airline will continue to face in this year, he added.

However, Grinstein also said Delta has made important progress toward its transformation goals, including cost reduction efforts and financial transactions.

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