Delta Air Lines, which is heading out of bankruptcy, has reported a first quarter net loss of US$130 million compared to a net loss of $2.1 billion in the first quarter of 2006.

However, a company statement said that the air carrier recorded a fourth consecutive quarterly operating profit amounting to $155 million due to strong passenger demand together with it network restructuring and revenue management initiatives.



A company statement said that excluding reorganisation items, the net loss was $6 million, a $350 million improvement compared to the net loss of $356 million in the first quarter of 2006.



For the quarter, which ended March 2007, Delta's operating margin was 3.7 per cent - an improvement of more than 8 points over the prior year period, excluding special items.



At the end of March 2007, the air carrier had $4.0 billion in cash, cash equivalents and short-term investments, of which $2.9 billion was unrestricted.



Total revenue for the first three months of 2007 amounted to $4.14 billion, 11.4 per cent higher than last year's Q1 total of $3.72 billion. Operating expenses during the reporting period decreased 2.3 per cent, or $94 million, despite a 2.0 per cent increase in capacity year on year.



Freight revenue decreased by 8.9 per cent from $123 million in Q1 2006 to $112 million in this year's first quarter.



"The past 18 months have been challenging times and Delta people rose to that challenge. As these results show, much more has been done than improving our financial structure. Delta has fundamentally transformed into a thriving industry leader," said Gerald Grinstein, Delta's chief executive officer.



"We are stronger - financially, operationally, and in spirit - and Delta is ready to return to its traditional leadership position in this highly competitive industry."