Delta Air Lines Inc. reported a much wider third-quarter loss despite a rise in revenue and warned that its financial situation has worsened to the point where it needs to significantly reduce its costs quickly to turn things around.
The results, announced today, missed Wall Street's reduced expectations.
The nation's third-largest airline said it lost $651 million, or $5.16 a share, for the three months ending Sept. 30, compared to a loss of $168 million, or $1.36 a share, in the same period a year ago. The current loss includes $5 million Delta paid out in dividends to preferred stockholders.
Analysts believe the airline has only a few weeks left to win $1 billion in concessions from pilots and restructure its heavy debt to avoid a Chapter 11 filing.
Delta blames high fuel and pilot costs as major contributors to its continued losses, which have surpassed $6 billion in the last three years.