(dpa) - Delta Air Lines and Northwest
Airlines, poised for a merger that would make them the world's largest
passenger carrier, Wednesday reported large first-quarter losses, blaming the
high price of jet fuel.
Delta's losses were 274 million dollars, while Northwest reported 191 million
dollars in shortfalls.
The deficits mean that all five of the largest US carriers were unprofitable in
the previous quarter as jet-fuel prices soared 63 per cent above the same
period last year.
Earlier this month, Northwest and Delta announced a 3.1-billion- dollar stock
swap deal that will allow them to consolidate routes and condense staff.
The move comes as the US appears to be headed toward recession and carriers
battle losses related to soaring fuel costs and intense competition,
particularly from budget airlines.
The industry veterans emerged from bankruptcy a year ago, and while the merger
could create labour problems and other consolidation pains, the two US airlines touted it as leading to greater efficiency and 1 billion dollars in annual
revenue generation and cost savings.
"The new carrier will offer superior route diversity across the US, Latin
America, Europe and Asia and will be better able to overcome the industry's
boom and bust cycles," Doug Steenland, Northwest's chief executive
officer, said in a statement about the merger last week.