Delta revises its annual report to reflect bankruptcy concerns

A Delta auditor expressed doubt about the airline's ability to continue.
ATLANTA (AP) -- Delta Air Lines Inc. revised its annual report Wednesday to reflect its growing financial difficulties and the possibility of seeking bankruptcy protection "in the near term."
The airline said that due to recurring losses and the increased risk of a Chapter 11 filing, its independent auditor, Deloitte & amp; Touche, has reissued its report "to raise substantial doubt about the company's ability to continue as a going concern."
The announcement came as chief executive Gerald Grinstein backpedaled from his earlier hope that an agreement with pilots on stemming early retirements could be worked out by week's end.
Statement
In a news release, Delta said that since filing its annual report with the Securities and Exchange Commission for the year that ended Dec. 31, "significant events have occurred which have materially adversely affected Delta's financial condition and results of operations."
"These events, which have been reported in Delta's subsequent SEC filings, include a further decrease in domestic passenger mile yield and near historically high levels of aircraft fuel prices," the statement said.
In a separate announcement, Delta said it had offered to exchange $680 million of its debt with new notes secured by $1.3 billion worth of debt-free aircraft, flight simulators and flight training equipment. The offer was made to holders of $2.6 billion in various forms of Delta debt.
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