Emergent Delta Keeps Global Goals

In bankruptcy, Delta(DALRQ Quote) transformed itself into an international airline. The carrier will emerge around April 30, company executives said Tuesday, but there will be no slowdown in its ambitious international growth.

Going forward, Delta expects to open markets from its Atlanta hub to London Heathrow Airport and to Shanghai. Already the leading transatlantic carrier, Delta plans to focus this year on growth in Asia. Over the longer term, it will build international traffic in Los Angeles and keep growing at New York's Kennedy Airport.

"This company is not going to look the same coming out of bankruptcy as it looked going in," CEO Jerry Grinstein said Tuesday during an investor conference Web cast. "It has gained an enormous amount of momentum." Shares in the new Delta will begin trading in early May.

More than any other airline, Delta used bankruptcy to remake itself. International flying will reach 40% of capacity this year, up from 20% when it filed. Its revenue per available seat mile is now 93% of the industry average, up from 86%.

For the first quarter, Delta expects to lose $25 million to $30 million, after losing about $350 million in the same quarter a year earlier, said CFO Ed Bastian. For 2007, the company expects pre-tax income of $816 million, excluding reorganization items. International capacity will grow 14% to 16%, with overall capacity up 2% to 4%.