Delta Airlines’ woes continue with $382 million net loss
Struggling Delta Airlines posted a second quarter net loss of $382 million, compared to a $312 million deficit in the same quarter 2004.
Delta’s situation was not helped by fuel costs amounting to $1 billion, representing a $385 million year-on-year increase.
Delta posted a second quarter operating loss of $129 million, an improvement on the $241 million operating deficit recorded in the same quarter last year.
One small piece of encouragement for Delta was a 5.7 percent increase in operating revenues to $4.18 billion from $3.96 billion. Cargo revenue increased 1.6 percent to $127 million.
“Record-high fuel prices and other factors out of our control during the quarter outpaced our transformation initiatives and masked our progress,” said Gerald Grinstein, Delta's chief executive officer.
“Our management team recognizes that further change is essential — and it must be implemented with even greater speed — if we are to achieve our goals in the increasingly competitive aviation marketplace,” Grinstein said.
For the six months ended June 30, Delta posted a net loss of $1.4 billion, an improvement over a net loss of $2.3 in the first half of 2004. Delta’s operating loss has deepened to $1.08 billion from $629 million. Operating revenues are up 4.6 percent to $7.83 billion from $7.49 billion. Cargo revenues were up 4.9 percent to $259 million.