Delta Airlines said today it swung to a fourth-quarter loss as the weak economy and sluggish travel business eroded revenues.
The third-largest US carrier posted a fourth-quarter loss of $486 million, excluding unusual items, compared with a net profit of $79 million a year earlier. The loss amounted to $3.97 per share, wider than most estimates.
Revenues fell to $2.863 billion in the quarter, down from $4.016 billion in the previous year.
Including all charges, the airline posted a net loss of $734 million for the quarter.
Delta's earnings have been pressured like other major US airlines, as the September 11 attacks eroded travel demand.
"These results clearly reflect a year of challenges unlike any we've seen in the history of aviation," said Delta chairman and chief executive Mr Leo Mullin in a statement.
Delta said it was granted $288 million from the US government under the Air Transportation Safety and System Stabilization Act in the fourth quarter that compensated the company for a portion of its direct and incremental losses resulting from the terrorist attacks.
Looking forward, the company said 2002 will be a year of recovery for the industry.
"Delta will continue its aggressive management approach in assessing the revenue environment, implementing cost management practices and preserving its liquidity position," it said.
AFP