Delta Air Lines says it expects a "significant loss in the March 2009 quarter" due to the weak economy and bad fuel hedges. The airline warned it could cut capacity beyond the 6% to 8% levels announced earlier, if demand continues to weaken. Nevertheless, Delta said it expects $500 million in synergies from its merger with Northwest Airlines, and management believes the carrier is well-positioned going forward. "We believe a combination of lower fuel prices, capacity reductions, and merger synergies better positions us to effectively manage our business through the current economic crisis," the company said in a filing with the SEC.
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