Delta’s Net Loss Widens

Delta Air Lines Inc. said Thursday that it lost $1.13 billion in the third quarter and blamed high fuel costs for the wider loss.

The nation’s third-largest airline expressed concern that it was continuing to borrow money to fund operations.

The results fell short of Wall Street expectations and came despite a solid gain in revenue.

The Atlanta-based carrier has been operating under federal bankruptcy protection since Sept. 14.

Delta’s loss for the quarter ended Sept. 30 compared with a loss of $646 million a year earlier.

The company’s report did not include earnings per share figures. Excluding reorganization costs and other special items, Delta said it lost $438 million.

Analysts surveyed by Thomson Financial had expected a loss of $412.5 million, or $3 a share, in the third quarter.

Delta’s revenue rose 8.9% to $4.22 billion from $3.87 billion in the third quarter of 2004.

The latest loss brings Delta’s cumulative red ink since January 2001 to about $11 billion.

“While we are pleased with the level of post-petition financing we were able to obtain, we must stop using borrowed money to fund our losses,” said Edward Bastian, Delta’s chief financial officer.

Delta ended the quarter with $1.36 billion in unrestricted cash, down from $1.46 billion at the end of last year.