The US airline industry is still in lousy shape, with some airlines
in much better shape than others, but about a third of the US
industry now bankrupt. The post-Katrina spike in fuel prices hit
the industry hard, particularly the already fragile carriers who
don't have fuel price hedges. Prices retreated from the spike,
giving them a small amount of breathing room, but conditions continue
to be very tough.
Planes are fairly full, schedules about back to the level of 2001.
Low fare carriers Southwest, Jet Blue, Frontier, and Airtran have
been profitable in recent quarters, with Alaska, American, and
Continental also making profit in the April-June 2005 second quarter.
But after 19 consecutive profitable quarters, Jet Blue lost money
in the last quarter of 2006 and says they won't be profitable
again any time soon. National, Midway and Vanguard Airlines are
out of business, United, ATA, and now Northwest, Delta, and Aloha
are flying in bankruptcy. Independence Air threw in the towel
and stopped operating as of Jan 5.
After being turned down for government assistance three times,
and being in bankruptcy for an astonishing 38 months, United emerged
from bankruptcy on on February 1st. They are losing money much,
much, slower than they used to. Oh, joy. They say they'd make
money if fuel were cheaper, which does not sound all that encouraging
to me. |
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