-->Delta expects negative cash flow for first quarter
Tuesday March 11, 3:14 am ET
ATLANTA (AP) -- Delta Air Lines expects negative cash flow from operations this quarter due to concern over potential war with Iraq, the airline said.
The third-largest U.S. airline did not give an estimate of its anticipated loss. Analysts surveyed by Thomson First Call expect the company to lose $3.04 per share.
Delta said Monday that it expects to fill 1.5 percent fewer seats than during the first quarter of 2002, instead of a 0.5 percent to 1 percent increase.
"Bookings for the quarter are down, and we expect this to continue," said M. Michele Burns, Delta's chief financial officer."Changes to capacity and additional fuel hedging agreements continue to help us manage through these difficult times. Delta remains committed to aggressively reducing costs and maintaining the flexibility to quickly adjust to changing market demand."
Atlanta-based Delta announced additional fixed-price fuel contracts, ensuring costs for about 60 percent of its estimated 2003 requirements at an average price of 77 cents per gallon. In January, the airline said it had hedged half its expected fuel needs for 2003 at an average price of 75 cents per gallon.
In January, the airline said cash flow from operations was expected to be slightly positive for the quarter.
Delta shares were down 22 cents Monday at $8.66 on the New York Stock Exchange.