NEWS: Delta Airlines Plans on Big Losses
Delta Airlines is warning everyone within earshot that 2005 is going to be downright grim. In a statement issued to the SEC, Delta says that the will have a "substantial"loss in 2005. According to the airline they will need to do some pretty agressive financial wrangling to keep themselves out of bankruptcy.
The prospect of bankruptcy does not hold the promise of a new tomorrow for Delta unlike United Airlines or Us Airways. Delta has made a lot of deals with creditors and, as a result, much of their free assets are...well...not free anymore. This means bankruptcy would be very complicated.
Delta's $5 billion dollar cost cutting target will likely not be met until late 2006. No help there.
In any case, we all get to stand by while Delta loses a $100 ka-jillion dollars. OK, ka-jillion isn't a real amount but folks might need to start making up new terminology to express the boatload of money that is going to be lost in 2005. How substantial is the loss going to be? Considering that the Delta lost a whopping $5 billion in 2004 I can only guess that 2005 will be worse than that.
The prospect of bankruptcy does not hold the promise of a new tomorrow for Delta unlike United Airlines or Us Airways. Delta has made a lot of deals with creditors and, as a result, much of their free assets are...well...not free anymore. This means bankruptcy would be very complicated.
Delta's $5 billion dollar cost cutting target will likely not be met until late 2006. No help there.
In any case, we all get to stand by while Delta loses a $100 ka-jillion dollars. OK, ka-jillion isn't a real amount but folks might need to start making up new terminology to express the boatload of money that is going to be lost in 2005. How substantial is the loss going to be? Considering that the Delta lost a whopping $5 billion in 2004 I can only guess that 2005 will be worse than that.
posted by The ACK at
22:49
