Pre-emptive triage up for bleeding airlines

By doris | Published: September 11, 2009

Full Story at CNN.com

With more than $6 billion in losses through June, the global airline industry is on track to outpace the initial yearlong prediction that it would lose $9 billion, said Brian Pearce, chief economist for the International Air Transport Association, which represents about 230 airlines.

“Airlines are in survival mode,” as they approach the end of the third quarter, Pearce said from his office in Geneva, Switzerland. “They’re trying to raise cash to carry them through, are starting to see some benefit, but they’ve got a very long way to go.”

Among the number of recent U.S. airline announcements meant to offset losses: A paring down of Southwest Airlines flights; the layoff of 921 flight attendants at American Airlines; a creeping up of baggage check-in fees at US Airways, among others; and the exclusive use of smaller, cheaper to operate regional jets for United flights out of St. Louis, Missouri.

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