Delta Air Lines Inc. has indicated about its plans to emerge from bankruptcy in late April. (3/28/2007)
Delta had previously not expected this to happen until May. The predictions were made in documents filed with markets watchdog, the Securities and Exchange Commission (SEC).
The airline expects to earn $816 million in pretax income excluding special items this year, it said in a filing with regulators. That compares with a 2006 pretax loss of $452 million.
As per the information available, Delta, which plans to relist on the stock market in early May, said it expected to reduce net debt to $7.6 billion this year from $16.9 billion as of June 30, 2005. The company expects to have a market value of about $10 billion.
CEO Gerald Grinstein hopes the carrier chooses an internal candidate to replace him when he steps down after the company exits bankruptcy.
“My strong preference - very strong preference - is that it be internal,” Grinstein reportedly said. “My persuasive powers will be brought to bear.”
According to Reuters, it also plans to slash debt and generate billions in cash flow.
“We have a lot of prospects for growth going forward,” said Ed Bastian, Delta’s chief financial officer and one of the front-runners as the successor to Grinstein, who plans to retire once Delta exits bankruptcy.
“We’ve got the revenue momentum at our back,” Bastian reportedly said.