Delta Airlines, which flies from Atlanta to Dublin and Shannon, last night warned that it could file for bankruptcy.
The warning, contained in a quarterly update to the Securities and Exchange Commission, was issued just three days after US Airways said it would consider returning to the bankruptcy court unless it could pare costs.
Delta, the number three carrier in the US, reported a net loss of $773m last year, and another net loss of $383m in the first quarter of 2004.
'Continued losses of the magnitude experienced in 2003 and the March 2004 quarter are unsustainable over the long term, and we have significant obligations due in 2005 and thereafter,' Delta said.
It added that if could not cut costs, return to profits and borrow more money 'on acceptable terms' it would need to pursue 'alternative courses of action', including Chapter 11 bankruptcy.
Under Chapter 11, a company may continue operating under court supervision while reorganising the business and trying to repay creditors over time.
Delta said it had made 'substantial' net losses for three straight years and did not expect significant improvement in 2004.
