Lost $124 Million LESS Than Same Period Last Year

In its Monthly Operating Report for May 2006 filed with the US Bankruptcy Court Thursday, Delta Air Lines reported it lost considerably less money this year than for the same period in 2005 -- even taking into account costs associated with the airline's Chapter 11 reorganization.

According to the report, Delta's net loss in May 2006 net loss was $16 million -- an impressive $124 million less than the carrier hemorraged in May 2005. Excluding bankruptcy costs, Delta's net income was $8 million. As of May 31, Delta also had $2.7 billion of unrestricted cash, cash equivalents and short-term investments on hand.

"Despite a 35 percent increase in fuel prices year over year, May's results represent our second consecutive month of profitability, excluding the impact of reorganization items," said Edward H. Bastian, Delta's executive vice president and chief financial officer. "While our improved results in traditionally high-traffic months are an encouraging sign that our restructuring plan is working, the continuing high price of fuel remains a significant risk factor to our restructuring plan and drives the increased urgency in completing our restructuring objectives."

So... are things turning around for the beleagured carrier? Time will tell... but it is important to note that for the first three months of this year, Delta posted a staggering $2.1 billion in losses... so "only" $16 million lost in the month since would tend to hint that some progress has been made...

FMI: www.delta.com