Delta revises outlook based on fresh-start accounting

<p>Delta Air Lines Inc., which emerged from bankruptcy earlier this week, said Wednesday in a regulatory filing that its projected pretax profit for the year will be reduced by $145 million because of fresh-start accounting.</p><p>The Atlanta-based airline had projected in March that it would earn a pretax profit for 2007, excluding special and reorganization items, of $816 million.</p><p>That figure has now been revised to $671 million, based on how Delta will report its results as a new entity since exiting bankruptcy on Monday.</p><p>As a result, Delta said its financial statements for the rest of the year will not be comparable, in various material respects, to any previously issued financial statements.</p><p>The estimated impact from the fresh-start accounting on Delta's pretax income for the eight-month period ending Dec. 31 excludes the impact of a possible change in the airline's accounting for its frequent flier miles program, Delta said, suggesting its projection could be revised further.</p><p>Delta said the accounting revisions are non-cash in nature.</p><p>The nation's third-largest carrier spent 19 1/2 months in Chapter 11, emerging as a standalone carrier after defeating a hostile takeover bid by Tempe, Ariz.-based US Airways Group Inc.</p><p>Delta's new stock will begin trading publicly on the New York Stock Exchange on Thursday. Its previous shares were canceled when it emerged from bankruptcy protection.</p><p>___</p><p>On the Net:</p><p>HASH(0x1cdbaa0)</p>