DELTA AIR LINES, which last month dodged a bankruptcy filing, reported staggering year-end losses that dwarf any prior hammering to the airline's bottom line.
America's number three carrier lost $2.2bn in the fourth quarter of 2004, and $5.2bn for the full year.
The report follows Delta's decision to cut unrestricted domestic fares by up to 50% beginning 5 January.
The carrier is on target to cut 7,000 of its workforce and reduce pilot compensation.
Continental Airlines, which also took a massive blow with a net loss of $206m, blamed high taxes for the airline industry's financial woes.
Continental complained that the government treats alcohol and tobacco better than the airline industry, noting an excess of $1bn in fees and taxes in 2004.
American Airlines and Northwest Airlines, which lost more than $800m, cited high fuel prices as a reason for the poor results.
AMR said it spent $477m more on fuel in the fourth quarter than it would have if 2003 price levels had remained flat.
Meanwhile, Southwest, which hedged its fuel years ago, reported a profit.
The carrier estimated it saved $174m on fuel as a result.
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