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Delta Air Lines to be in negative equity by year-end.


Delta Air Lines has suggested that its fourth-quarter loss will be at least 50% larger than previously forecast.

The airline has stated that its loss will be increased because of pension plan charges caused by a large jump in pilot retirements. It has said that a USD140m non-cash charge will increase its expected loss to a range of USD365m to USD415m from its previous estimate of between USD225m and USD275m. The airline will also book an after-tax charge to shareholders' equity of USD700m connected to pension plan obligations.

Delta Air Lines expects to finish the year with negative equity of USD600m as a result of the expected loss and the charge to shareholders' equity, reported Reuters.

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Publication:Airline Industry Information
Geographic Code:1USA
Date:Nov 13, 2003
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