Delta Air Lines cuts $750M in company debt in 3Q; plans to reduce debt 41 pct by end of 2012
By APTuesday, October 5, 2010
Delta Air Lines cuts debt $750M in 3Q
ATLANTA — Delta Air Lines said Tuesday it has trimmed company debt by $750 million in the third quarter.
The Atlanta-based carrier said Tuesday the debt reduction is part of a plan to cut its debt 41 percent to $10 billion by the end of 2012.
Its debt as of the end of the second quarter had been $15.6 billion, so the reduction in the third quarter would have taken it down to roughly $14.85 billion.
Delta says it plans to cut debt through a variety of means, such as buying some of the aircraft it currently is leasing and buying back senior notes ahead of schedule.
Company Treasurer Paul Jacobson said the debt-reduction initiatives this year should cut Delta’s annual expenses by $125 million. However, they’ll also result in a one-time charge of $350 million in the third quarter associated with a non-cash loss on the cutting of debt.
Delta shares rose 32 cents, or 2.8 percent, to $11.83 in Tuesday trading.
