As predicted, this massive loss of cash is being spun as some sort of fantastic "win" by the spinmeisters. I WANT Delta to succeed. I NEED Delta to succeed. But the numbers reported from the WSJ don't look pretty.

"Who you gonna believe, me or your lying eyes?", as the saying goes . .

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Oct 22, 2009 WSJ

Business

Delta Posts Wider Loss

by Joan E. Solsman


Delta Air Lines Inc. third quarter loss widened in the face of surging interest costs.

U.S. carriers generally have been posting improved results from a terrible showing the year earlier. Falling fuel prices alleviated much of the strain from last year, but unit revenue, a key measure of performance, has continued to fall.

Delta on Thursday posted a loss of $161 million, or 19 cents per share, compared with a loss of $50 million, or 13 cents, a year earlier. Interest costs soared to $319 million from $140 million. The world's largest carrier by revenue recorded a $83 million loss from debt extinguishment.

Adjusting to include last year's results from Northwest Airlines, which merged with Delta late last November, the year-adjusted loss would have been $64 million.

Revenue for the latest quarter was $7.57 billion. That compares with $9.53 billion if the two carriers had been combined a year earlier. Delta alone posted revenue of $5.72 billion in the third quarter of last year.

Like other airlines, Delta has seen a deep drop in travel demand, particularly in international travel and high-yield, business-class tickets. That has offset the benefit of lower fuel prices. In its bankruptcy reorganization and merger with Northwest Airlines, Delta secured one of the lowest cost bases in the industry and has enough cast to carry it through year-end. But in August, it said it would need to cut costs further, saying it would lay off management workers and trim spending with vendors and professional services.

Delta said it expects operating margin to break even for the fourth quarter.