Delta Air Lines has liquidity problems and faces higher oil prices but it should avoid bankruptcy, said its chairman.
“Our basic plan is that in 2005 and 2006 we are going to constantly be bumping up against liquidity issues, and we should be able to handle that,” Chief Executive Gerald Grinstein said at a transportation conference.
Delta avoided a Chapter 11 filing last year when it arranged $1 billion in wage and benefit concessions from its unions and found another $1 billion in new financing.
Two of the ten leading US airlines, United Airlines and US Airways, are now flying under Chapter 11 bankruptcy protection.
Delta last year had a record net loss of $5.2 billion.
Report by David Wilkening
