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Delta Air Lines reports loss on higher fuel costs

NEW YORK - Delta Air Lines Inc reported a third-quarter loss on Wednesday as it faced more than $800 million in extra fuel bills as oil spiked in the quarter.

The Atlanta-based airline, which emerged from bankruptcy in April 2007, also said it would complete its purchase of Northwest Airlines Corp by the end of the year.

Delta, which is set to become the world's biggest airline by traffic when the Northwest deal is completed, reported a quarterly net loss of $50 million, or 13 cents per share, compared with a profit of $220 million, or 56 cents per share, in the same quarter last year.

Excluding one-time items, it reported a loss of 7 cents per share. That was wider than the 2 cents per share loss expected by Wall Street, according to Reuters Estimates.

Earlier this year, US airlines announced big cutbacks as they grappled with unprecedented oil prices. Oil is now trading around $76 per barrel, about where it was a year ago, but in the third quarter airlines had to contend with a spike above $147.

Unsure whether high oil prices would be permanent, carriers have been forced to raise fares and introduce new fees while they retire old planes, cut services, jobs and capacity and target more lucrative international routes.

In March, Delta unveiled plans to cut 2,000 jobs, offering voluntary retirement and ‘early out’ programs, but said later that more than 4,000 employees had chosen to take part in the programs.

Delta shares were untraded before the market open.