Northwest and Delta Air Lines are likely to file for Chapter 11 bankruptcy protection in mid-September, a month before a new, more restrictive bankruptcy law goes into effect, bankruptcy experts say.
Northwest and Delta continue to post losses while trying to cut costs and adjust to high fuel costs.
Douglas Steenland, Northwest's president and chief executive, has acknowledged that a new bankruptcy law taking effect Oct. 17 would be "one of the factors" in deciding whether to file.
Gerald Grinstein, Delta's chief executive, told employees in a memo last week that the airline's efforts to cut about $5 billion were not enough to avoid a possible bankruptcy filing.
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