New numbers released regarding Delta Air Lines' financial health were not good today, with the carrier saying it lost $1.4 billion in the last three months of 2008.According to Delta officials, 2009 consolidated passenger unit revenue was likely to decrease by four percent.
Revenue for the world's largest carrier increased 43 percent to $6.7 billion in the quarter, compared to $4.7 billion in 2007, as Delta finalized its purchase of Northwest on in late October.
The decrease in revenue in the latest fourth quarter included a $904 million charge related to employee equity awards. Delta reiterated its previously announced move to trim systemwide capacity 6 percent to 8 percent in 2009.
Analysts predict that Delta will post another loss for the first quarter of this year, but to start turning a profit as the year moves on.
According to Delta CEO Richard Anderson in a released statement, "I want to thank my 85,000 Delta colleagues for their outstanding achievements in 2008 -- a year where we not only faced the severe challenges brought on by over $2 billion in increased fuel costs and the onset of a global recession, but also closed our merger with Northwest and began a smooth integration process. Despite the difficult economic environment, we expect to be solidly profitable in 2009 driven by lower fuel costs, capacity discipline, and merger synergies. Delta people have a great track record for achieving their goals, and I am confident that 2009 will be another successful year."
Delta Air Lines Inc. operates Delta, Northwest Airlines, Comair, Mesaba Airlines and Compass Airlines.
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