Delta Air Lines Incorporated, the third-largest U.S. air carrier, on Wednesday posted a fourth-quarter loss on soaring fuel prices that also have battered its competitors. Delta, which emerged from bankruptcy at the end of April, said the loss was $70 million, in line with analysts' expectations. The company had posted a loss of $1.98 billion in the fourth quarter of 2006. Operating revenues rose 10 percent to $4.68 billion, helped by an increase in passenger revenue. However, Delta said its fuel costs rose 28 percent to $1.36 billion during the quarter. Following losses at American Airlines and United Airlines, Delta's results underscore the strain on the airline industry. With fuel prices near record levels and concerns that the U.S. economy is heading into recession, airlines are considering mergers in an effort to better handle difficult economic conditions. Delta is reportedly in merger talks with both Northwest Airlines and United Airlines.
