Atlanta ? Delta Air Lines and its pilots union appear headed for a showdown about wage concessions after the nation’s third-largest carrier reported another huge quarterly loss, warned of mounting debt and said radical changes might be needed to turn things around.

The Atlanta-based company has not been able to reach a deal with pilots to cut their pay during on-again, off-again talks during the past year, and both sides remained steadfast in their positions Wednesday as Delta posted a $387 million first-quarter loss.

The situation puts Delta on a dangerous course. At its current rate of burning cash — $500 million in the January-March period — the airline only has enough cash on hand to last until summer 2005. The carrier also has $20.6 billion in debt and a falling credit rating, making it more expensive to borrow.

Airline industry analyst Ray Neidl of Blaylock & Partners in New York said Delta was in no immediate threat of bankruptcy. But he said if the airline doesn’t get an agreement on deep pilot wage cuts in the next nine to 12 months, there may not be any other alternative.

“There’s no furniture left to sell,” Neidl said.

Delta chief executive Gerald Grinstein told analysts during a conference call Wednesday after releasing the airline’s latest loss figures that “continued losses of this magnitude are unsustainable.”

Highlighting Delta’s heavy debt load, Grinstein added that “our balance sheet has been severely damaged, to the point of exhaustion.”

At the end of March, Delta had $2.18 billion in cash, down from $2.71 billion at the end of December.

A Delta Airlines jetliner takes off from Los Angeles International Airport in this 2001 photo. The nation's third-largest airline announced Wednesday that it lost 87 million, or .12 a share, for the three months ending March 31.

Grinstein said “dramatic and radical changes” might be needed to return the airline to profitability. He refused to elaborate, saying a review of potential options could last until late summer.

He previously has said the carrier would fight to avoid bankruptcy.

The company is seeking a 30 percent pay cut from pilots, who are offering only 9 percent and to forego a 4.5 percent raise they are due in May, the pilots union has previously said.

Pilots union spokesman Chris Renkel said he was disappointed by the company’s firm stance on wage cuts.

“We have expressed our willingness to negotiate from the start and have not shut the door on any kind of interim talks,” Renkel said. “But their tenacity in sticking to their opening position does not provide a framework for moving forward.”