Delta Sets Charge for Early Retirements

Delta Air Lines Inc. said about 2,500 employees have accepted an early-retirement offer, which will result in a one-time charge of $86 million against the carrier’s fiscal second-quarter earnings. In January, Delta said it would continue to pay medical insurance coverage for about 10,000 eligible employees who choose to accept early retirement. The offer was made to workers 50 or older with 25 years at Delta or to those 52 or older with 20 years of continuous employment. Atlanta-based Delta also said it will lower its operating income for fiscal 2000 by $34 million to reflect new accounting for revenue from frequent-flier miles it sells to its marketing partners. The accounting change, which will be retroactive to July 1, 1999, will cost the company about $66 million. Delta also said it has exercised its right to convert 6 million shares it holds in Priceline.com Inc. from common to preferred stock. The airline said it will realize a noncash gain of $228 million for the exchange. Delta shares rose $2 to close at $53.38 on the NYSE.