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Delta Posts $6.39B 1Q Loss

Rising fuel costs bring airline to massive downturn despite sales increase

By Jim O'Neill, Newser User

Posted Apr 23, 2008 7:46 AM CDT

(Newser) – Staggering fuel prices overwhelmed a 12% sales increase and pushed Delta Air Lines to a $274-million loss in the first quarter, which ballooned to $6.39 billion on a $6.1-billion non-cash charge reflecting a decline in its market value. Excluding special items—including the bankruptcy-related charge—the airline lost 69 cents a share; analysts had expected 49 cents a share, the Wall Street Journal reports.

The loss, driven by a 50% increase in the cost of fuel, doubles last year’s first-quarter loss of $130 million, when Delta was under Chapter 11 protection. Delta’s shares have fallen 69% in the past year. The proposed Delta-Northwest merger, which would result in the world's largest passenger carrier, is expected to help the airlines cope better with soaring fuel prices.

A Delta Airlines plane prepares to take off from a runway as a United Airlines plane, rear, lands at San Francisco International Airport. (AP Photo/Jeff Chiu)

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Delta Posts $6.39B 1Q Loss

Rising fuel costs bring airline to massive downturn despite sales increase

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Airlines Hike Ticket Prices

United raises prices by up to $60; American, Delta follow its lead

United and Continental May Be Next to Merge

Delta-Northwest deal likely to spark more consolidation

Top Carriers Weigh American Airlines Merger

US Airways, Delta in the running

Delta Backs Down On Soldiers' Baggage Fees

Policy changed after returning troops stung with excess charges

Passenger Complains of 3-Hour Wait on 100° Plane

He films it all on his phone

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Delta Posts $6.39B 1Q Loss

Rising fuel costs bring airline to massive downturn despite sales increase

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OTHER STORIES ON OUR RADAR

airline industry • Delta Air Lines • earnings reports • fuel costs

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Airlines Hike Ticket Prices

United raises prices by up to $60; American, Delta follow its lead

United and Continental May Be Next to Merge

Delta-Northwest deal likely to spark more consolidation

Top Carriers Weigh American Airlines Merger

US Airways, Delta in the running

Delta Backs Down On Soldiers' Baggage Fees

Policy changed after returning troops stung with excess charges

Passenger Complains of 3-Hour Wait on 100° Plane

He films it all on his phone

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Newser By Users

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