Mumbai: Delta Air Lines Inc., the third largest US airline, has come out of bankruptcy, after successfully completing a $3 billion restructuring over the past 19 months.

A US bankruptcy court had on 25 April, given the airline the go-ahead to exit bankruptcy at the end of this month.

Delta emerged a leaner carrier after cutting capacity and about $1 billion in labour costs. It also added more than 60 international routes amidst low-fare competition in the domestic market.

While a number of US airlines, including Southwest Airlines Co. and JetBlue Airways Corp., have recently complained of sluggish bookings ahead of the busy summer travel season, Delta said its expansion into lucrative international markets and its lower costs will help it overcome a downturn.

Delta has forecast a pretax profit, before special items, of $816 million this year, after a loss of $452 million in 2006.

For exiting bankruptcy, Delta said it will use a $2.5-billion exit-financing facility led by banks, including JPMorgan, Goldman Sachs and Merrill Lynch, to repay the company''s $2.1-billion debtor-in-possession loan, make payments associated with exiting bankruptcy and increase liquidity.

Delta''s restructuring is projected to cut its net debt by more than half to $7.6 billion at the end of 2007 from $16.9 billion at June 30, 2005, it said.

The company will issue new common shares against bankruptcy claims and as part of a post-emergence compensation programme for Delta employees, the airline said.

Regular trading in the new stock is expected to begin on the New York Stock Exchange on May 3. Until then, they will trade on a when-issued basis.

Delta''s old shares, which had been trading over-the-counter, are being canceled. Holders of these shares will receive nothing under the reorganisation plan, the company said.