Citing weakening industry demand and fuel hedge losses, Delta Air Lines has reported a $794 million first quarter loss. While the loss falls below the earlier year figures of a $6.39 billion loss, the year-on-year comparison cannot be taken in an exacting sense, since Delta took over Northwest Airlines in October for $2.8 billion last year.

Similarly, even though the first quarter revenue posted has also shown a rise of 40 percent compared to year before figures - from $4.77 billion to $6.68 billion - a strict comparison still cannot be made due to the aforesaid reason.

Saying that it has suffered severe blows due to the weak global economy, the Atlanta-based airline has decided to introduce a $50 fee on checking a second bag onto an international flight, with effect from July 1. The airline, which already charges fees for the first and second checked bags on domestic flights, projects the new fee to yield over $100 million yearly.

Moreover, to cut costs, Delta also intends grounding its fleet of 14 747-200 cargo aircraft by 2009-end, owing to the aircraft's age and operational inadequacy. In addition, another way the airline would be able to reduce costs by next fall is by seeing the back of the 2,500 employees who accepted early-out and early retirement packages after the Northwest acquisition!