Recovery Comes to Crashing Halt

This article reviews the plunge in U.S. airlines’ financial performance after the 2007 recovery. After imposing cost controls to increase profitability, fuel cost rises have led to losses that are spiraling out of control for the first quarter of 2008. The 10 largest U.S. carriers posted a cumulative net loss of $11.76 billion. That figure includes a $10 billion noncash goodwill impairment charge recorded by Delta Air Lines and Northwest Airlines. Still, only Southwest registered a profit and saw earnings plunge by more than 63 percent year over year. Delta and Northwest are proposing a merger, while Southwest is planning on cutting fleet growth to protect its profits. JetBlue, AirTran Airways, Alaska Airlines, Horizon Air, Continental, US Airways and American Airlines are also discussed.

Language

  • English

Media Info

  • Media Type: Print
  • Features: Tables;
  • Pagination: pp 63-64
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01103829
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Jun 18 2008 12:38PM