Outlook for Airlines Bleak as War Approaches, Fuel Costs Soar

Oil Daily, The, March, 2003 by Emily Rehring

WASHINGTON -- The state of the airline industry is about to get even bleaker in the event of war, to the tune of $10.7 billion in losses in 2003, as the airlines struggle to keep afloat with bookings plummeting, high jet fuel costs, and decreased revenue.

All of these factors have the potential to force more airlines into Chapter 11, following the lead of United Airlines and US Airways late last year, according to a report released Tuesday by the Air Transport Association (ATA).

ATA President and CEO James May outlined the current dismal situation of the airline industry, and that combined with the economic impacts of a second war in Iraq, could result in $10.7 billion in losses for the industry in 2003, if the government does not step in.

The...