Delta Reports $11M Loss for August

Delta Air Lines Inc., which is operating under bankruptcy protection, reported Friday that it lost $11 million in August. The Atlanta-based company, which is the nation's third-largest airline, said the net loss in the 31-day period was equivalent to 6 cents per share.

It was a $147 million improvement from the net loss of $158 million in August 2005, Delta said.

The airline said it recorded revenue of $1.60 billion in the month of August. It said it spent $431 million on aircraft fuel, part of $1.54 billion in total operating expenses in the month.

As of the end of the month, Delta said it had $3 billion of unrestricted cash.

Delta, which filed for bankruptcy in New York in September 2005, is expected to emerge from Chapter 11 by the middle of next year. The airline has said repeatedly it wants to remain a standalone airline rather than merge with another carrier.

The airline has lost more than $16 billion since January 2001.

While in bankruptcy, Delta has cut labor costs, restructured aircraft leases and reorganized its finances. It also has received court permission to terminate its pilots pension plan, which will save it billions in pension contributions over the next several years.

"During the month of August, Delta continued to make progress as evidenced by our revenue and cost performance," Ed Bastian, Deltas chief financial officer, said in a statement. "While we have more work ahead of us to achieve sustained profitability, we are encouraged by our results to date and are on track with our restructuring plan."


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