War In Iraq Affects Airline Industry

War In Iraq Affects Airline Industry

As U.S. carriers struggle to survive a 10% drop in demand and an increase in jet fuel, they brace themselves for the possible financial backlash of Operation Iraqi Freedom. There is no way to predict the war with Iraq will affect the air carriers. A short operation brings about different possibilities than that of a long war. With U.S. air carriers already expecting a 4-6% billion for 2003, many believe that the war with Iraq could cost the airlines an additional $4 billion per quarter. On Wall Street airline and hotel stocks are once again down. Fear that the war with Iraq may be more drawn out than thought is keeping people from traveling. All major carriers are coming under pressure on Wall Street. The airlines are asking for more relief from the U.S. government to help them survive.

Not all believe that the overall loss will be so bad. Some believe that it would be a surprise to see another 10% drop in traffic given the current situation and slow economy. Some see it as being beneficial for the airlines as long as it remains a short and successful war. Oil

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