Delta continues to hemorrhage cash

Delta continues to hemorrhage cash    Delta Airlines, one of the largest global airlines, reported a first quarter loss of $383 million, down from a $466 billion loss in the first quarter of 2003 but more than the airline or analysts had expected. The news and comments by company officials sparked speculation on Wall Street that the company might be moving closer to filing for bankruptcy.
   “Continued losses of this magnitude are unsustainable,” said Gerald Grinstein, chief executive officer. “Delta must regain sustained profitability so we can compete effectively. The urgent task is to achieve a competitive cost structure so that Delta can generate a positive cash flow, reduce its debt burden and return to profitability.”
   Record high fuel costs wiped out a substantial portion of the cost savings the Atlanta-based airline had managed to achieve in recent months. Delta officials say that the only way to get a handle on expenses is to get its pilots, who are the highest paid in the industry, to agree to a new labor contract with lower salaries.
   Delta increased revenues 4.1 percent to $3 billion. Cargo revenue was up 8 percent to $122 million.