$6.2 billion loss by Delta really a gain in recovery
By Russell Grantham
The Atlanta Journal-Constitution
Published on: 02/15/07
Only in the upside-down world of bankruptcy court could a $6.2 billion annual net loss mean things are going well.
Delta Air Lines on Wednesday posted that eye-popping figure for 2006, along with a $2 billion deficit for the fourth quarter alone.
But as it has done throughout its flight through Chapter 11, the airline said the huge losses were largely a result of one-time restructuring charges rather than daily operations.
The bulk of those charges reflect the value of monetary claims Delta settled as part of its bankruptcy case, and thus serve as a measure of progress. Meanwhile, financial results that come from operating the airline now continue to improve, the airline said.
It touted a $58 million "operating profit" —- a measure that excludes all restructuring charges, as well as certain other expenses —- for last year, marking the first such profit since 2000.
"They've made a substantial improvement, and they're on track with their turnaround plan," said Standard & Poor's analyst Philip Baggaley, supporting the carrier's explanation.
story
By Russell Grantham
The Atlanta Journal-Constitution
Published on: 02/15/07
Only in the upside-down world of bankruptcy court could a $6.2 billion annual net loss mean things are going well.
Delta Air Lines on Wednesday posted that eye-popping figure for 2006, along with a $2 billion deficit for the fourth quarter alone.
But as it has done throughout its flight through Chapter 11, the airline said the huge losses were largely a result of one-time restructuring charges rather than daily operations.
The bulk of those charges reflect the value of monetary claims Delta settled as part of its bankruptcy case, and thus serve as a measure of progress. Meanwhile, financial results that come from operating the airline now continue to improve, the airline said.
It touted a $58 million "operating profit" —- a measure that excludes all restructuring charges, as well as certain other expenses —- for last year, marking the first such profit since 2000.
"They've made a substantial improvement, and they're on track with their turnaround plan," said Standard & Poor's analyst Philip Baggaley, supporting the carrier's explanation.
story
