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Delta May File for Bankruptcy Today

Delta May File for Bankruptcy Today



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Gene Kennedy reportingWill it happen? Analysts say it comes down to the next 24 hours, and most experts think Delta will declare bankruptcy.

The nation's third largest airline is expected to file bankruptcy this afternoon, according to an industry consultant.

Just two days ago, Delta said no decision has been made about going bankrupt. Now, an industry consultant who has been informed of the company's plans is telling the Associated Press Delta could file for bankruptcy later today.

It is also possible the decision could be pushed back to Thursday. It all hinges on when Delta secures roughly two-billion dollars in financing the company is seeking.

Delta's shares fell 8-percent on the New York Stock Exchange yesterday. It's now below a dollar.

The airline has made several attempts to improve profits, with employees making concessions. The airline also sold Atlanta Southeast Airlines to Skywest. But high fuel costs have basically erased progress.

The airline plans to reduce its capacity at its Cinncinati hub but add about a dozen destinations from Salt Lake.

Delta has about 39-hundred employees in Utah.

When United Airlines filed for bankruptcy, travelers saw little change. Analysts predict that will also be the case with Delta, that Salt Lake City flyers won't see much of a difference.

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