Delta Loses $16 Million in May

Delta Air Lines Inc., the third-largest U.S. carrier, said Thursday it lost $16 million (euro12.8 million) in May.

The Atlanta-based company, which is operating under bankruptcy protection, said in a filing with the court that the loss amounted to 8 cents a share.

It said it had $1.98 billion (euro1.58 billion) in disbursements in the 31-day period and revenue of $1.49 billion (euro1.19 billion) in the month. It spent $365 million (euro291.32 million) on aircraft fuel in May.

Excluding reorganization items, Delta said it earned $8 million (euro6.39 million) in May.

The company has lost more than $14 billion (euro11.17 billion) in the last five years, but has been lessening its red ink in recent months as it continues to cut costs.

Delta has restructured or rejected lease agreements on aircraft and reaped hundreds of millions of dollars in savings from employee wage and benefit cuts.

Delta has said it hopes to emerge from bankruptcy within the first half of 2007. It has twice asked for a delay in exclusively filing its reorganization plan - before creditors can weigh in with alternative plans - but has said it doesn't believe that will hold up the timing of its emergence from Chapter 11.

Delta also has notified the government's pension insurer that it is seeking to terminate its pilots' defined benefit pension plan effective Sept. 2. The airline has yet to file its formal request with the bankruptcy court.

Delta filed for bankruptcy last September.

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