Turbulence Ahead For Airline Industry: Analysts

Law360, New York (May 20, 2008, 12:00 AM EDT) -- Massive fuel price rises and expected record operating losses threaten to send more U.S. airlines ducking for Chapter 11 cover, according to a report by experts at JP Morgan Chase & Co.

The report, released Monday by the investment bank's airline equity team, warns that more bankruptcies in the industry are a certainty, with fuel costs expected to increase by $17.5 billion and profits to drop by an all-time low of $7.2 billion this year. Operating loss estimates for 2009 are an even gloomier $8.1 billion,...
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