Delta predicts net loss in 2003; cites continued weak economy ATLANTA (AP) =97 Delta Air Lines announced in its annual shareholders report= =20 released Tuesday that it expects a net loss for 2003, citing rising costs,= =20 declining demand and increased competition that have plagued the airline=20 industry since Sept. 11, 2001. Delta, which lost $1.3 billion in 2002, has= =20 responded to the difficult business environment by reducing costs and=20 increasing the airline's liquid assets, the report said, but many=20 challenges remain. "Clearly, the airline industry will face additional=20 uncertainty and continued duress in the months ahead," Delta chief=20 executive Leo Mullins wrote in a letter to shareholders. "Economic analysts= =20 indicate that recovery is unlikely before 2004, if then." The report also=20 predicts a greater first-quarter net loss in 2003 than the one in 2002,=20 which amounted to $397 million, or $3.25 a share. To mitigate losses, the report said, the company has cut passenger capacity= =20 on Delta routes by 16 percent since Sept. 11 and staff by approximately=20 16,000 or 21 percent. Delta announced Monday an additional 12 percent=20 reduction in flights. The war in Iraq, the bankruptcy of major competitors= =20 United and US Airways and the possible bankruptcy of other airlines could=20 affect Delta's ability in 2003 to stem losses and secure necessary=20 financing in capital markets, according to the report. Costs are expected=20 to continue rising in 2003, the company said, including a jump of=20 approximately $600 million to $800 million from the 2002 levels for=20 pensions, interest and fuel. Delta has about $700 million of current debt=20 maturities and capital lease obligations due in 2003. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.thehummingbirdonline.com TnT Webdirectory: http://search.co.tt *********************************************************