Delta Airlines reports a net loss of $1.4 billion for the final quarter of last year. It comes within a weakened economy and the carrier’s recent merger with Northwest.
The loss of $2.11 a share was a big spike compared to the year earlier--an 18-cents-a-share loss for the carrier. For the full year of 2008, Delta lost nearly $9 billion. Other major carriers such as American and United Airlines last week reported fourth-quarter losses due to weak travel demand tied to the global financial crisis.
For Delta, much of its negative balance sheet last quarter involved $900 million given in employee stock awards relating to the merger with Northwest.
But while predicting a "sizable loss" for the first three months of this year, Atlanta-based Delta is forecasting a "solidly profitable" 2009, driven by lower fuel costs and its plan of reducing capacity.
Delta says it will cut its flight volume by an average 6-8 percent across its system this year.
The loss of $2.11 a share was a big spike compared to the year earlier--an 18-cents-a-share loss for the carrier. For the full year of 2008, Delta lost nearly $9 billion. Other major carriers such as American and United Airlines last week reported fourth-quarter losses due to weak travel demand tied to the global financial crisis.
For Delta, much of its negative balance sheet last quarter involved $900 million given in employee stock awards relating to the merger with Northwest.
But while predicting a "sizable loss" for the first three months of this year, Atlanta-based Delta is forecasting a "solidly profitable" 2009, driven by lower fuel costs and its plan of reducing capacity.
Delta says it will cut its flight volume by an average 6-8 percent across its system this year.
