Delta Air Lines Warns of First-Quarter Loss

Delta Air Lines (DAL Quote) warned Tuesday it expects earnings to fall short of Wall Street forecasts in the first quarter.

The airline said it expects to lose $85 million to $110 million, or 70 cents to 90 cents a share, in the quarter. In the year-ago quarter, Delta earned $1.27 a share. For this quarter, the consensus forecast of 11 analysts is for earnings of 46 cents a share, according to First Call/Thomson Financial.

A reduced flight schedule, the weaker economy and customers wary of a possible pilot strike kept Delta's numbers down, executives said today in a filing with the Securities and Exchange Commission.

At the end of February, Delta and the Airline Pilots International union requested arbitration from the National Mediation Board on terms of a new contract. The neutral body has yet to respond to their request.