27904--3/27/2006--DELTA_AIR_LINES_INC

related topics

{operation, natural, condition}

{cost, contract, operation}

{cost, operation, labor}

{competitive, industry, competition}

{debt, indebtedness, cash}

{personnel, key, retain}

{financial, litigation, operation}

{product, market, service}

{tax, income, asset}

{control, financial, internal}

Employee strikes and other labor-related disruptions may adversely affect our operations. We have substantial liquidity needs and face significant liquidity pressure. Our Post-Petition Financing Agreements include financial and other covenants that impose substantial restrictions on our financial and business operations. We have experienced significant losses in recent years, which have had a material adverse effect on our financial condition. The implementation of our business plan requires that we make significant changes to our business. Our business is dependent on the price and availability of aircraft fuel. Continued periods of historically high fuel costs will continue to materially adversely affect our operating results. Likewise, significant disruptions in the supply of aircraft fuel would materially adversely affect our operations and operating results. The retirement of a significant number of our pilots prior to their normal retirement age of 60 could require significant contributions to our defined benefit pension plan for pilots, significantly disrupt our operations and negatively impact our revenue. Our defined benefit pension plan funding requirements are significant, are affected by factors beyond our control and could have a material adverse impact on our liquidity. Interruptions or disruptions in service at one of our hub airports could have a material adverse impact on our operations. We are increasingly dependent on technology in our operations, and if our technology fails or we are unable to continue to invest in new technology, our business may be adversely affected. If we experience further losses of our senior management and other key employees, our operating results could be adversely affected, and we may not be able to attract and retain additional qualified management personnel. We are facing significant litigation and if any such significant litigation is concluded in a manner adverse to us, our financial condition and operating results could be materially adversely affected. We are at risk of losses and adverse publicity stemming from any accident involving our aircraft. Issuances of equity in connection with our restructuring increase the likelihood that in the future our ability to utilize our federal income tax net operating loss carryforwards may be limited. Risk Factors Relating to the Airline Industry The airline industry is highly competitive and, if we cannot successfully compete in the marketplace, our business, financial condition and operating results will be materially adversely affected. The airline industry has changed fundamentally since the terrorist attacks on September 11, 2001, and our business, financial condition and operating results have been materially adversely affected.

Full 10-K form ▸

27904--3/27/2006--DELTA_AIR_LINES_INC_/DE/