ATLANTA (AP) -- Shares of Delta Air Lines Inc. tumbled again Monday as the third largest U.S. carrier prepared to file its quarterly report on its operations to the Securities and Exchange Commission.
The filing, expected by late afternoon, may update investors on the Atlanta-based airline's efforts to negotiate an agreement with a new Visa/MasterCard credit card processor. Its existing processing contract expires on Aug. 29.
Delta, which has been beset by talk of a possible bankruptcy filing, delayed filing the SEC report last Tuesday because of the credit card processor negotiations.
Delta shares fell 27 cents, or 16.8 percent, to $1.34 in morning trading Monday on the New York Stock Exchange. Prior to the dip, the stock was already at its lowest point in at least 43 years.
In delaying its SEC filing last week, Delta said the credit card processor it is negotiating with is requiring Delta to put up a significant cash reserve, deposited with the processor immediately upon start of the new contract, for tickets purchased using Visa or MasterCard but not yet flown.
Delta said it can't accept these credit cards for payment unless it has a processing contract in effect.
Delta said it is exploring alternatives to offset a portion of the cash reserve. While Delta wouldn't specify its plans, some analysts have said the airline could sell assets like its feeder carriers Comair Inc. and Atlantic Southeast Airlines.
Delta, hit by high fuel costs, has lost nearly $10 billion (euro8 billion) since January 2001.
Airline analyst Ray Neidl of Calyon Securities in New York attributed Monday's stock decline to further talk in news reports about bankruptcy.
''It continues to add to the tension,'' Neidl said.
Copyright 2005 Associated Press
