NYTimes.com Article: Delta Air Increases Its Estimate of Loss

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



This article from NYTimes.com
has been sent to you by psa188@xxxxxxxxx


/-------------------- advertisement -----------------------\

FOR YOUR CONSIDERATION: IN AMERICA - IN THEATRES NOVEMBER 26

Fox Searchlight Pictures proudly presents IN AMERICA
directed by Academy Award(R) Nominee Jim Sheridan (My Left
Foot and In The Name of the Father). IN AMERICA stars Samantha
Morton, Paddy Considine and Djimon Hounsou. For more info:
http://www.foxsearchlight.com/inamerica

\----------------------------------------------------------/

Delta Air Increases Its Estimate of Loss

November 13, 2003





By Bloomberg News

Delta Air Lines said yesterday that its net loss this
quarter would be as much as $415 million, wider than an
earlier forecast, as costs rose from pilots' retirement.
Delta increased its financing of pilots' pensions by $140
million this quarter.

The airline is headed for its third consecutive loss this
year after $2.49 billion of losses since 2001 amid an
industrywide drop in passenger demand and a cutback in
flights. Delta, which is trying to reduce costs, has also
been hurt by competition from discount airlines. It had
forecast a fourth-quarter loss as high as $275 million.

The increase in fourth-quarter pension spending is impelled
by more than twice as many pilots' retiring than usual, the
chief financial officer, Michele Burns, said. Delta expects
about 630 pilots to retire in the current pension-plan
year, she said, in contrast to the typical 200 to 300
retirements.

A Fulcrum Global Partners analyst, Jeff Kauffman, suggested
that the retirements would be helpful in the short term
because the airline will use lower-paid pilots. "This is
actually good news going forward for earnings," he
declared, "because what they've done is taken the
highest-paid, most expensive employees out of the
equation."

Delta will suspend preferred-stock dividends in employee
savings plans as a result of the additional costs and loss.
The dividends on the preferred shares, which are mainly
held by employees and retirees, will be paid at a later
date, Ms. Burns said.

The airline has been seeking wage concessions from its
pilots since April. Its big rivals, American Airlines and
United Airlines, have already reduced wages, with United's
parent company operating under bankruptcy protection. Among
discount carriers, Delta has faced increased competition
from AirTran, and JetBlue Airways and Southwest Airlines
have expanded in Delta's Eastern United States markets.

http://www.nytimes.com/2003/11/13/business/13air.html?ex=1069731787&ei=1&en=38ec6319755d9e5f


---------------------------------

Get Home Delivery of The New York Times Newspaper. Imagine
reading The New York Times any time & anywhere you like!
Leisurely catch up on events & expand your horizons. Enjoy
now for 50% off Home Delivery! Click here:

http://www.nytimes.com/ads/nytcirc/index.html



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

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]