Bad news at Delta and Independence Air yesterday:
–Delta’s stock hit a new 43 year low after an analyst downgraded the carrier on fears that it would declare bankruptcy within two months. The airline also postponed its quarterly report (never a good sign) because it is in negotiations with a new credit card processor who is demanding a large cash reserve (Delta would obviously prefer not to tie up its limited cash in a reserve fund for credit card processing).
–Independence Air’s quarterly numbers weren’t good either, as costs increased and revenues dropped 24%. The revenue drop is pretty disturbing. Look for a bankruptcy filing soon.