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Delta Could File for Bankruptcy this Week

Delta Could File for Bankruptcy this Week



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Jed Boal ReportingDelta may file for bankruptcy protection as early as mid-week. An industry consultant tells The Wall Street Journal the airline is near a deal to finance operations as it restructures.

Delta worked hard this year to try to dig itself out of nearly ten billion dollars in losses since 2001. Employees made concessions and it sold Atlanta Southeast Airlines to Skywest, but Delta may file for bankruptcy protection to stay in the air.

One local travel analyst thought they might be able to ride out the rough times, but soaring fuel costs wiped out all of the things they did to improve their profitability.

The airline has about 39-hundred employees in Utah. Last week, Delta said it would reduce its capacity at its Cincinnati hub and add about a dozen destinations from Salt Lake. So, even if Delta files for bankruptcy protection, the Salt Lake Delta hub may continue to grow.

When United Airlines filed for bankruptcy, travelers saw little change. Other airlines kept frequent flier programs in tact during bankruptcy, but keep an eye on that.

Mark Slack, President of Morris Murdock Travel: "They really can't afford to scare away any of their passengers. I think they'll do everything they can to protect the things that are important to travelers."

A greater concern for all fliers could be fuel prices. The industry consultant said Delta may file Wednesday or Thursday. Delta declined comment and said no decision on bankruptcy has been made.

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