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Delta narrows quarterly loss to $130 million

Delta Air Lines Inc., a week away from exiting bankruptcy, reported Monday that it narrowed its loss in the first quarter on an 11.4 percent rise in sales.
/ Source: The Associated Press

Delta Air Lines Inc., a week away from exiting bankruptcy, reported Monday that it narrowed its loss in the first quarter on an 11.4 percent rise in sales.

The nation's third-largest carrier said it lost $130 million in the three months ended March 31, compared to a loss of $2.07 billion for the same period a year ago. The year-ago loss included $2 million in dividends that accrued for preferred shareholders.

Excluding reorganization and special items, Delta said it lost $6 million in the latest quarter.

Delta's balance sheet did not list per-share figures.

Revenue in the first quarter rose to $4.14 billion from $3.72 billion in the same period a year ago.

As of March 31, Delta had $2.9 billion in unrestricted cash, cash equivalents and short-term investments.

Atlanta-based Delta, which filed for bankruptcy on Sept. 14, 2005, is expected to emerge from Chapter 11 on April 30. Its existing stock will be canceled, and it will issue new shares to pay creditors and generate new investors.

A confirmation hearing on its reorganization plan is scheduled for Wednesday in U.S. Bankruptcy Court in New York. An overwhelming majority of creditors have voted to approve the plan, which values Delta at $9.4 billion to $12 billion upon emergence from Chapter 11. Delta's new stock is expected to begin trading in early May.