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Last Updated: Thursday, 16 September, 2004, 06:07 GMT 07:07 UK
Fresh doubts over Delta Air Lines
Delta is struggling in the current tough business environment
The auditors of Delta Air Lines have raised doubts about the company's ability to stay in business.

America's third-biggest airline filed a report on Wednesday, saying that its recurring losses have prompted Deloitte & Touche to reissue its report.

Delta has already announced job cuts, which it said were made necessary by high fuel costs, pricing pressures, debt repayments and labour problems.

Many US carriers are suffering in a tough business environment.

The airline made a regulatory filing to the Securities and Exchange Commission (SEC) on Wednesday to update its 2003 annual report, bringing the auditors' change of heart to the regulator's attention.

The reissued auditors' report raises doubts about the company's ability to continue as a "going concern", Delta said in a statement.

America's third-biggest airline has said it is meeting with bankruptcy lawyers in case it decides to seek Chapter 11 bankruptcy. This would allow it to continue operating while giving it legal protection from creditors.

Shares in Delta fell more than 6% to $3.85 in after-hours trading on the New York Stock Exchange.


SEE ALSO:
Delta plans to cut 10% of staff
08 Sep 04  |  Business
Flying into trouble - again
23 Jun 04  |  Business


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