Delta Air Lines expects to post a "substantial" net loss in 2005 and will struggle to meet its cash needs amid low margins and high fuel prices, the carrier said in a regulatory filing on Thursday.

"We believe that we will record a substantial net loss in 2005 and that our cash flows from operations will not be sufficient to meet all of our liquidity needs for that period," the airline said in a filing with the Securities and Exchange Commission.

Delta narrowly avoided bankruptcy last year and posted a USD$2.2 billion loss in the fourth quarter alone.

The Atlanta-based carrier is one of several US airlines which have faced liquidity woes. Two of Delta's six largest rivals, United Airlines and US Airways, are already operating under Chapter 11 bankruptcy protection from creditors.

Despite its problems, Delta in January launched an aggressive plan to cut fares mostly used by business travelers. Rival Continental Airlines warned on Wednesday that matching Delta's price cuts would depress its annual revenues by USD$200 million.