Delta 1st-Quarter Loss Widens on Lower Fares
Delta Air Lines Inc.’s first-quarter loss widened after the Sept. 11 attacks dragged down demand and fares at the No.3 U.S. carrier.
The loss expanded to $397million, or $3.25 a share, from $133 million, or $1.11, a year earlier, the company said. Sales fell 19% to $3.10 billion.
Delta’s first-quarter passenger traffic, or miles flown by paying customers, fell 8.1% as average fares slid 13%.
Delta expects a smaller loss this quarter than in the first quarter.
Excluding $25 million in costs to ground planes and train and relocate employees, and an $18-million accounting change for stakes in other companies, the loss was $354 million, or $2.90 a share. Analysts expected a loss of $2.87, according to Thomson Financial/First Call.
Delta shares fell 38 cents to $29.63 on the New York Stock Exchange.
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