ATLANTA, Georgia, Aug 9 (AFP) - US carrier Delta Air Lines warned Monday it will need to file for bankruptcy protection unless it can reduce costs.
In a filing with the Securities and Exchange Commission, the carrier said: "If we cannot make substantial progress in the near term toward achieving a competitive cost structure ... we will need to seek to restructure our costs under Chapter 11 of the US Bankruptcy Code."
The airline has faced mounting difficulties forcing it to post huge losses, partly as profits have shrunk in response to rocketing oil prices.
It's not the first time Delta has warned of financial failure. The company is conducting intense talks with workers in a bid to secure wage cuts, as well as looking at other ways to trim costs.
The 7,500 Delta pilots last month offered to accept a 23 percent pay cut to help avoid bankruptcy but the carrier has pressed for more.
Delta reported a net loss of 1.96 billion dollars in the second quarter, mostly because of an accounting charge. Excluding the charge, losses amounted to 312 million dollars.