WASHINGTON, April 26 (Reuters) - Despite staggering losses, big airlines should be able to weather the financial turbulence that has rocked the industry since Sept. 11, Delta Air Lines (DAL) Chairman Leo Mullin said on Friday. "U.S. airlines have recovered from the initial blows of this crisis," Mullin said at the company's annual shareholders meeting. "Survival of all airlines seems probable." The top eight domestic carriers reported $2.4 billion losses in the first quarter after bleeding almost $9 billion in red ink in 2001. After the hijack attacks and before a congressional bailout provided $5 billion in cash, some carriers said they might go bankrupt. Mullin said No. 3 Delta, which posted a $397 million first quarter loss, was well positioned to compete. But he offered no idea of when the industry would return to profitability. Delta expects to be in the black in the second half of this year. Delta ended the quarter with $1.5 billion in cash, $1.6 billion in short-term liquidity and $7 billion in unencumbered aircraft that could be used as collateral, if needed. The carrier plans to strengthen its position in Atlanta and the Southeast and expand service to Latin America and the Northeast, where Amtrak has muscled in on Northeast shuttle operations at Delta and US Airways (U). Mullin said Amtrak now controls about 50 percent of that market -- the only service the passenger railroad runs that makes money -- compared with only 10 percent before Sept. 11. Delta and US Airways each have about 25 percent of the remaining business. "This has had a tremendous impact on us," Mullin told reporters after his speech. Although air travelers are slowly returning, the Delta chief said the biggest short-term problem for that carrier and the industry was reducing passenger inconvenience caused by post-Sept. 11 security measures. Mullin said the "hassle factor" -- long lines and other hold-ups at passenger screening checkpoints -- were a key reason why people, especially business travelers, were seeking other options or staying put. "We must restore customers to first place in our concerns, creating an aviation system that maximizes security and passenger convenience," Mullin said. ©2002 Reuters Limited.