Delta Air Lines posted the airline industry's biggest loss yet for the first quarter this afternoon, and said it will give leave of absence to 200 pilots as the sector grapples with a crippling downturn.
Atlanta-based Delta, the third biggest carrier in the US, said it was facing "the greatest financial crisis" in its history, and said the war in Iraq had depressed travel demand further.
The airline reported a net loss of $466 million, or $3.81 a share, compared to a loss of $397 million, or $3.25 per share, a year earlier.
Northwest Airlines and Continental Airlines have already reported $617 million in combined losses this week, as the tepid economy, the war in Iraq, and the spread of Severe Acute Respiratory Syndrome (SARS) in Asia sacked business.
Delta's results put the US airline sector's net losses for the latest quarter well over the $1 billion mark.
But industry watchers say Delta, whose first-quarter revenue rose slightly to $3.2 billion from $3.1 billion, is better-prepared than most of its rivals to survive the industry's downward spiral.
Shares of Delta rose 39 cents, or 3.7 per cent, to $10.88 in early trade on the New York Stock Exchange.
Before items, Delta reported a loss of $426 million, or $3.49 per share. Wall Street analysts had expected a loss of $3.51 per share, with estimates ranging from a loss of $3.16 to $3.95 per share, according to Thomson First Call.