This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Delta Air Reports Wider Loss and Plans to Cut More Pilots April 18, 2003 By BLOOMBERG NEWS ATLANTA, April 17 (Bloomberg News) - Delta Air Lines said today that its first-quarter loss widened to $466 million as the war in Iraq reduced international travel and increased fuel costs. Second-quarter results will be "substantially worse" than in the period last year, Michele Burns, the chief financial officer, told analysts in a conference call. Delta said it would lay off 200 pilots by the end of May because of lower travel demand. The first-quarter net loss grew to $3.81 a share from $3.25 a share, or $397 million, a year earlier, Delta said. Sales rose 1.7 percent, to $3.16 billion, better than some analysts expected. Continental Airlines and Northwest Airlines reported wider losses this week because of the war, which worsened the two-year slide in business travel and raised fuel costs because of concern that oil supplies would be disrupted. The industry is expected to have its worst quarterly losses ever. Shares of Delta rose $1.26, or 12 percent, to $11.75. Delta has had productive talks with its pilots' union about lowering costs, Leo Mullin, the chief executive, told analysts in the conference call. "I think we'll be moving forward with a sense of urgency on both sides," Mr. Mullin said. The union was not immediately available to comment. Excluding $40 million in pension, labor-related and fuel costs, Delta's first-quarter loss would have been $426 million, or $3.49 a share. On that basis, the company was expected to have a loss of $3.51, the average estimate of analysts surveyed by Thomson Financial. The war trimmed first-quarter revenue by $125 million and will also hurt this quarter's results, Delta said. Ticket bookings so far for April are weaker than they were last year, Ms. Burns said. Delta cut flight capacity 12 percent last month in response to lower demand stemming from the war. The airline's jet-fuel costs rose 51 percent as prices for oil climbed on concern that the war would disrupt supplies. Total first-quarter expenses rose 4.3 percent, to $3.7 billion, led by fuel and labor. Delta said it arranged $900 million in financing this month to replace credit lines expiring this year. The company had cash and other short-term assets of $2.5 billion at the end of the quarter. http://www.nytimes.com/2003/04/18/business/18DELT.html?ex=1051674341&ei=1&en=cccfd51b0727359d HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company