Delta Air sees gloomy outlook

The comments came as Delta reported a net loss of $330m (£213m) for the July to September quarter.

The airline also said it was deferring all deliveries of new aircraft in 2003 and 2004, and would ground its fleet of large MD-11 aircraft.

Delta, along with most airlines, has suffered from the downturn in business following the 11 September attacks last year.

Industry struggling

"Clearly, today's results are disappointing," said chairman and chief executive Leo Mullin.

"Our industry is experiencing unprecedented financial challenges."

Excluding one-off costs, Delta's net loss came in at $212m, or $1.75 a share.

The figure was better than the loss of $1.84 a share which had been forecast.

But Mr Mullin told reporters that no short-term improvement in the industry was expected in either the fourth quarter or into next year.

Last month, Delta announced it was cutting 1,500 flight attendant jobs as it sought to reduce costs.

It is not the only US airline struggling.

US Airways has already filed for bankruptcy, and United Airlines has warned it may have to follow suit unless it makes major cost cuts.