Complain about a product or service

Delta Warns of Possible Bankruptcy

May 10, 2005
Hit by high fuel costs and bruising fare competition, Delta Air Lines today warned that it will have a substantial loss for the last nine months of the year and warned it may have to file for bankruptcy if conditions worsen.

Delta Airlines • SkyMiles • Travel vouchers • Delta/AmEx promotions • European promotions • Reservations & itinerary changes • Lost/damaged luggage • Unaccompanied children • Puerto Rico USA • Miscellaneous --- News • Delta Reduces Capacity As Fuel Prices Rise • Delta Cuts Flights in Slowing Economy • Delta Alters Fees to Conform to Northwest's • Delta, Northwest Complete Merger • Delta Adding Wi-Fi to All Flights • Delta Raises Second Checked Bag Fee to $50 • Delta Passengers Stranded 7 Hours on Plane • Delta Sells Ads on Boarding Passes • Delta, Northwest Merger Faces Heavy Chop • US Airways Makes Bid for Delta • Delta Beefs Up Routes, Retrofits Its Jets • Delta Begins Passing On Airport Fees To Passengers • Delta Writes Coda to Song • Delta Files for Bankruptcy • Delta Sells Regional Carrier To Raise Cash • Delta Abandons $499 Fare Cap • Delta Warns of Bankruptcy • Delta Passengers To Brown Bag It • Delta Cuts Fares

In its quarterly Securities Exchange Commission filing, Delta said it will have to seek bankruptcy protection if its cash reserves fall too low or if any of its creditors call its loans and demand immediate payment.

"We believe that we will record a substantial net loss for the nine months ending Dec. 31 and that our cash flows from operations will not be sufficient to meet all of our liquidity needs for that period," the nation's third-largest airline said it the filing.

Delta had a $1.1 billion loss in the first quarter, and the latest filing held out little hope for improvement for the next three quarters.

The airline said it may have to sell assets or seek additional cost cuts but warned that these tactics may not be enough to avoid a bankruptcy filing.

"We cannot assure you that the anticipated benefits of our transformation plan will be achieved or that these benefits, if achieved, will be adequate for us to maintain financial viability," Delta wrote in the SEC filing.

In all, Delta has $14.1 billion in debt.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |