Just when you think that the airlines have run out of ways to bleed red ink, along comes Delta Airlines Inc. (NYSE: DAL) and Northwest Airlines Corp. (NYSE: NWA).

The Atlanta-based carrier reporting a staggering loss of $6.14 billion, or $16.15 per share. Excluding a bankruptcy-related charge, Delta would have earned lost $274 million, or 69 cents per share, as fuel costs soared by $585 million compared with a year earlier. Revenue rose to $4.77 billion. Analysts had expected a loss of 51 cents on revenue of $4.6 billion, according to Thomson Financial.

"Our need to respond to the pressures of dramatically rising fuel costs and a softening U.S. economy drove us to take a closer look at all options to protect Delta's future," said Chief Executive Officer Richard Anderson in the earnings release. "The merger with Northwest will create an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace."

It was more of the same for Northwest, which is based in Eagen, Minnesota The carrier reported a first quarter loss of 4.14 billion, or $15.78 per share, on sales of $3.13 billion. Analysts had expected a loss of 30 cents on revenue of $3.13, according to Thomson Financial.

Not surprisingly, Northwest President Doug Steenland said much of the same thing in his company's earnings release, adding that the combined company will "better able to match the right planes with the right routes, making transportation more efficient across our entire network."

Investors aren't buying the companies' line, sending shares of both companies down in early trading. Delta's stock has dropped more than 54% year-to-date. Northwest's are down more than 48%.

The question remains whether combining the two carriers will create a stronger airline or a larger, weaker one.