Merging airlines Northwest and Delta announced first quarter losses totaling $10.49 billion between the two. Delta suffered a setback of $6.39 billion, while Northwest reported $4.1 billion. Both companies cite record fuel prices and a decline in market value as the cause of the losses.
“Northwest’s first quarter performance was negatively impacted by the dramatic increases in the price of oil,” Northwest’s president and CEO, Doug Steenland, said in a company release. “Year-over-year our first quarter total fuel expense increased by $445 million, or 57.3 percent.” Delta’s fuel expense increased by $585 million over the same period; the average price of fuel has risen to $2.77 per gallon from $1.85 in the first quarter 2007.
The carriers attribute decreased market capitalization as a direct result of rising fuel costs and higher operational costs. Delta’s losses equate to $16.15 per share and Northwest's to $15.78.
The airlines hope that their merger will enhance performance and global competitiveness
when the economy improves.
Read the Northwest Airlines first quarter report.
Read the Delta Air Lines first quarter report.
