The current state of the airline industry Options

[Hartmann]

Things are getting really ugly, really quick.

United has reduced capacity, is cutting staff, and is killing of their low-cost carrier TED.
US Airways has not fulfilled its order for two planes that could fly their new route to China, so they'll lose the route and they're reducing capacity.
The Delta/Northwest Merger isn't complete yet, so who knows the outcome.
Continental announced this morning that they are reducing capacity and cutting some staffing.
ExpressJet (who Continental employs to fly their little jets) is on the verge of Ch11.
Southwest has raised fares considerably.
JetBlue has cut a number of routes.
AA is nickel and diming customers to make up the costs.


yikes.

[impala454]

losses?

[Hartmann]

losses?

Yes. Downstream companies, or companies that only refine, have been struggling paying $130 / barrel. Like I posted in the other thread, refining is not the industry you want to be in when the price of a barrel surges. Selling the stuff at the pump is not a cash positive industry.

Some of the major companies (Valero comes to mind) have been able to reduce the pain but they have red on their sheets and they're wanting to get rid of that.