Delta posts net loss of $1.1 billion in 3rd quarter

Delta posts net loss of $1.1 billion in 3rd quarter    Bankrupt Delta Airlines reported a third quarter net loss of $1.1 billion, compared to a net deficit of $592 million in the prior year quarter.
   Delta’s net loss included a $692 million charge related to the airline’s September Bankruptcy petition.
   The Atlanta-based airline posted a third quarter operating loss of $240 million, an improvement on the $423 million operating deficit recorded in the same quarter last year. Delta said its fuel costs in the quarter increased 53.1 percent to $1.2 billion.
   Operating revenue improved 8.9 percent to $4.2 billion from $3.9 billion. Cargo revenue increased 9.4 percent to $128 million.
   “Our results for the third quarter show the challenges we continue to face,” said Gerald Grinstein, Delta’s chief executive officer. “We are committed to moving quickly and decisively to achieve our business plan that we announced in late September. We believe this plan will position Delta to become the lean, aggressive, profitable airline it must be to compete effectively over the long-term in the fast-changing airline industry environment.”
   Delta plans to lower costs by $3 billion a year by the end of 2007, on top of a previous cost-savings target of $5 billion a year by the end of 2006. The airline hopes to achieve the extra cost savings by improving revenue and network productivity, as well as cutting back on some 7,000 to 9,000 employees by the end of 2007.
   For the nine months ended Sept. 30, Delta posted a net loss of $2.58 billion, from a net loss of $2.99 billion in the same period 2004. Delta’s operating loss has deepened to $1.32 billion from $1.05 billion. Operating revenues are up 6 percent to $12.04 billion from $11.36 billion. Cargo revenues were up 6.3 percent to $387 million.