Auditor raises doubts about Delta Air Lines

Airline Industry Information,  Sept 16, 2004  

Tags: Delta Air Lines Inc.

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AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

An independent auditor has raised doubts about Delta Air Lines' financial viability as the airline revises its annual report to include the possibility of bankruptcy.

Auditor Deloitte & Touche reissued its report into the airline to raise "substantial doubt" about Delta Air Lines' ability to continue as a going concern. The airline said that the report was reissued after certain events, including the decrease in domestic passenger traffic and rise in fuel prices, had affected its financial condition.

Delta Air Lines also issued a statement saying that it has offered to exchange USD680m of debt for new notes secured on debt-free aircraft and training simulators worth USD1.3bn. The airline has said that it needs USD1bn in concessions from employees and to renegotiate its debt with creditors to avoid bankruptcy, reports The Associated Press.

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