=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2005/03/10/financial/= f053101S13.DTL --------------------------------------------------------------------- Thursday, March 10, 2005 (AP) Delta Sees 'Substantial Loss' in 2005 (03-10) 05:31 PST New York (AP) -- Delta Air Lines Inc., the world's third-largest carrier, said Thursday in a filing with the Securities and Exchange Commission that it expects to report a "substantial" loss in 2005, and doesn't believe the company's cash flows from operations will be sufficient to meet all of Delta's liquidity needs. Delta shares closed Wednesday at $4.89 on the New York Stock Exchange, b= ut plunged 74 cents, or 14.5 percent, to $4.35 in premarket activity. Delta said it doesn't expect to achieve the full $5 billion in targeted benefits under the company's transformation plan until the end of 2006. Delta noted that it continues to face significant challenges due to low passenger mile yields, high fuel prices and other cost pressures related to interest and pension expenses. The airline said it currently expects to meet its liquidity needs for 2005, but because mostly all of Delta's assets are encumbered and its credit ratings are low, the airline doesn't expect to be able to obtain any additional debt financing. Therefore, Delta said it expects its cash and short-term investments will be much lower at Dec. 31, 2005, than at the end of 2004, unless the airline is able to sell assets or issue stock or convertible debt. ---------------------------------------------------------------------- Copyright 2005 AP