Delta Air Lines reports narrower second-quarter losses

Delta Air Lines reports narrower second-quarter losses

United States’ third largest airline company Delta Airlines has reported a much lower second quarter losses. The revenue figures beat the market estimates as the company said that it lost $388 million, or $2.64 a share. These figures are a massive improvement over last years figures of losses of $1.97 billion, or $15.70 a share. The latest results are also the best for the company since 2003 and it includes the $6 million amount paid out to preferred shareholders in dividends.

The airlines has till now lost USD 10 Billion paid out to preferred shareholders and they might be forced into bankruptcy protection if Congress doesn’t enact meaningful pension reform by the fall. Rising fuel costs has not helped them to recover from the losses being made in the last so many quarters. The company spent $1.05 billion on fuel in the quarter, up 57.5 percent from the second quarter of 2004.

On the market, Delta stock lost 36 cents, to $3.55, on the New York Stock Exchange. They also recently replaced its chief financial officer and made other executive changes as it prepared to record the hefty loss. Michael Palumbo is the second Chief Financial Office to leave the company in the last 14 months.