Reuters
Delta shares fall, investors focus on cash reserves
Tuesday August 10, 10:19 am ET
CHICAGO, Aug 10 (Reuters) - Shares of Delta Air Lines (NYSE:DAL - News) fell to their lowest level in decades on Tuesday morning, a day after the company said it would dip into cash reserves to cover some of its costs.
shares were off 7.3 percent after slipping as much as 10.8 percent earlier in the session.
The No. 3 U.S. airline, which is trying to reduce expenses to avoid a bankruptcy filing, ended the second quarter with $2 billion in cash, down from $2.7 billion at the end of 2003.
Analysts have said the Atlanta-based carrier could run into a liquidity crisis as soon as this fall or winter if it cannot secure major cost cuts. Delta shares were at $3.69, down 7.3 percent, on the New York Stock Exchange on Tuesday morning. Earlier in the session, the shares fell to $3.55, their lowest level in more than two decades.
Delta shares fall, investors focus on cash reserves
Tuesday August 10, 10:19 am ET
CHICAGO, Aug 10 (Reuters) - Shares of Delta Air Lines (NYSE:DAL - News) fell to their lowest level in decades on Tuesday morning, a day after the company said it would dip into cash reserves to cover some of its costs.
shares were off 7.3 percent after slipping as much as 10.8 percent earlier in the session.
The No. 3 U.S. airline, which is trying to reduce expenses to avoid a bankruptcy filing, ended the second quarter with $2 billion in cash, down from $2.7 billion at the end of 2003.
Analysts have said the Atlanta-based carrier could run into a liquidity crisis as soon as this fall or winter if it cannot secure major cost cuts. Delta shares were at $3.69, down 7.3 percent, on the New York Stock Exchange on Tuesday morning. Earlier in the session, the shares fell to $3.55, their lowest level in more than two decades.
