Delta Air Lines reported a new loss of $794 million during the first quarter, saying that the weak economy and bad bets on fuel hedges weighed down its results. And, in the wake of the loss, the carrier moved quickly to add a new source of revenue. "The Atlanta-based company said it would immediately institute a $50 fee for most passengers to check a second bag on an international flight for travel beginning July 1. The company expects to generate more than $100 million annually from the new fee. Delta already charges fees for the first and second checked bags on domestic flights," The Associated Press writes. Elite-level frequent fliers and active military will be exempt from the fee.
Bloomberg News writes Delta also "will ground all 14 Boeing Co. 747-200 freighters acquired in the purchase of Northwest Airlines because the 25- year-old jets are inefficient and cargo revenue has plunged." Additionally, Reuters writes: "To cut costs as it combines its business, Delta said that more than 2,500 employees accepted early-out and early retirement packages, and are expected to leave the airline next fall."
As for the first-quarter numbers, AP reports that "excluding special items, Delta said its first-quarter loss was 84 cents a share. Analysts polled by Thomson Reuters, who generally exclude one-time items from their estimates, expected Delta to post a loss of $1.01 per share for the first quarter on sales of $6.7 billion." The Wall Street Journal adds that "excluding charges linked to its merger with Northwest Airlines and work-force reductions, earnings would have been 84 cents a share. Excluding another $684 million of fuel-hedging losses and other items, the airline would have broken even."
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