According to a recent report in the industry newsletter, Aviation Daily, Standard & Poor’s said Pension Bill S.3108, provides “much needed breathing room” for the nation’s airlines. Delta supports this legislation that was recently passed by Congress and signed by the president. Airlines have been awaiting a resolution on this bill that is expected to provide more flexibility in case external events, like prolonged high fuel prices or a major act of terrorism, place renewed pressure on airlines' liquidity.

Low-cost carriers fear the bill will put the major carriers in a better position to compete. Betsy Snyder, transportation analyst for Standard & Poor’s told Aviation Daily, "I think [the majors] will continue to go head to head against the low-cost carriers, and…it will allow them to sustain low fares longer and take less of a hit."

The temporary relief contained in the bill is important to help ensure Delta’s ability to continue to meet ERISA obligations. DL continues to be committed to full compliance with its pension benefit funding obligations. On Feb. 27, DL made a $321 million contribution to the Delta Retirement Plan. This contribution, combined with smaller contributions made earlier this year, brings the company’s total contributions to $325 million. Estimated contributions for the Delta Pilot Retirement plan are $115 million in 2004.