AIRLINES: Flying Along at Treetop Level

Flying Along at Treetop Level

The airline industry is struggling to maintain altitude under the twin burdens of a slumping economy and rising fuel prices. Prognosis: some of the weak carriers may fail. Eastern, already in bankruptcy, is losing $1.5 million a day, about 50% more than a few months ago. A prime reason for the accelerating losses, says Eastern trustee Martin Shugrue, is the rise of jet-fuel prices. The airline pays 96 cents per gal., up from 56 cents before Iraq's invasion of Kuwait. Last week Shugrue urged President Bush to form a task force to find ways to bring oil prices under control. Another...

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