Delta, Northwest blame fuel costs for losses

Delta, Northwest blame fuel costs for losses    Delta Air Lines and Northwest Airlines Thursday produced the latest set of depressing air industry financial results with rocketing fuel costs crippling hopes of recovery.
   Delta reported a first quarter net loss of $1.1 billion, compared to a loss of $383 million in the same period last year. Operating loss deepened to $258 million from a deficit of $210 million in the first quarter 2004.
   Delta’s operating revenues in the first quarter were $3.6 billion, up 3.3 percent over the $3.2 billion posted in the year-earlier period. Cargo revenue increased 8.2 percent to $132 million.
   Northwest Airlines Corp., parent company of Northwest Airlines, reported a first quarter net loss of $450 million, compared to a loss of $223 million for the same period in 2004. Operating loss worsened to $292 million from $108 million in the same year-earlier period.
   Northwest’s revenues increased 7.5 percent to $2.8 billion, compared to $2.6 billion in 2004. Revenue from cargo increased 12.6 percent to $206 million from $183 million.
   “Record-breaking fuel prices are masking the many crucial, large-scale, core initiatives our airline implemented during the quarter,” said Gerald Grinstein, Delta’s chief executive officer. “The issue is simple: including fuel, Delta is not on plan, but excluding fuel, we are better than plan,” Grinstein said.
   Doug Steenland, Northwest’s president and CEO echoed the sentiment: “Record high fuel prices and increasingly noncompetitive labor costs on the expense side and excess capacity and competitors’ pricing decisions on the revenue side negatively affected our performance during the quarter.”
   During the first quarter Delta’s fuel costs jumped 54 percent to $884 million. Northwest’s fuel expenses rose 40 percent to $630 million.