Delta warns on earnings and cuts jobs

Delta Air Lines, the third-biggest US carrier, has said it is to cut 1,500 flight attendant jobs and warned of deeper-than-expected third quarter losses.

"The industry has been in a slump, and there are few signs of improvement," said Delta spokeswoman Peggy Estes.

Airlines have been struggling since the 11 September terror attacks in the US last year.

US Airlines has already filed for bankruptcy and the United Airlines has warned that it may have to follow suit unless it is able to make deep cost cuts.

Delta said it expected to post a third quarter loss of about $225m (£145m) before one-off items. Analysts had been expecting a loss of about $193m.

The airline said it hoped to achieve the staff reductions through voluntary redundancy.