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By Mike Caggeso
For the quarter, Delta posted a net loss of $274 million, or 69 cents per diluted share. Northwest, which Delta agreed to merge with a couple weeks ago, posted a $4.1 billion loss, or $15.78 a share, which included a $3.9 billion non-cash expense and other costs.
phrased their pain at the pump slightly different, saying it paid $2.77 per gallon for jet fuel in the first quarter compared to $1.85 a gallon in the first quarter of 2007, nearly a 50% increase.that its fuel costs increased by $585 million year over year. Northwest
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With their losses in the books, all five major U.S. airlines posted losses in the first quarter – as the diving dollar and a slowing economy added the strain of skyrocketing gas prices. And to recover, carriers are bumping up prices accordingly while trimming the number of planes in the air.
"Our need to respond to the pressures of dramatically rising fuel costs and a softening U.S. economy drove us to take a closer look at all options to protect Delta's future," Delta Chief Executive Officersaid in the statement. "The merger with Northwest will create an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace."
Should that happen, the top eight U.S. carriers would all record first-quarter losses.
News and Related Story Links:
- Delta Air Lines Inc.:
- Northwest Airlines Corp.:
Northwest Airlines Reports First Quarter 2008 Results
- Associated Press:
Earnings Preview: US Airways expected to post 1Q loss