Delta Air Lines exits bankruptcy after restructuring

02 May 2007

Mumbai: Delta Air Lines Inc., the third largest US airline, has come out of bankruptcy, after successfully completing a $3 billion restructuring over the past 19 months.

A US bankruptcy court had on 25 April, given the airline the go-ahead to exit bankruptcy at the end of this month.

Delta emerged a leaner carrier after cutting capacity and about $1 billion in labour costs. It also added more than 60 international routes amidst low-fare competition in the domestic market.

While a number of US airlines, including Southwest Airlines Co. and JetBlue Airways Corp., have recently complained of sluggish bookings ahead of the busy summer travel season, Delta said its expansion into lucrative international markets and its lower costs will help it overcome a downturn.

Delta has forecast a pretax profit, before special items, of $816 million this year, after a loss of $452 million in 2006.