Troubles for Airlines Continue
By Michael de Yoanna
Created 2009-01-23 11:29

By: Michael de Yoanna [1]

Category:

Posted:

Troubles for Airlines Continue

Southwest Airlines Co., the third-busiest carrier at Denver International Airport, keeps losing money. For a second consecutive quarter, the Dallas-based airline posted losses--this time $56 million, or 8 cents per share--according to the Denver Business Journal [2], which notes that the airline saw $111 million in gains just one year ago. The reason for the struggle is the airline's bad betting on fuel prices, a problem that has also struck DIA's largest carrier, United Airlines. Earlier this week, United announced a $1.3 billion loss for the fourth quarter, adding 1,000 workers to its rising number of layoffs, according to The Associated Press [3]. It is unclear how the layoffs will play out in Denver. While United expects reduced demand, officials for AeroMexico are hopeful a new flight between Denver and Mexico City, which starts February 1, will draw customers, according to The Denver Post [4].

Source URL: http://www.5280.com/blogs/2009/01/23/troubles-airlines-continue

Links:
[1] http://www.5280.com/tag/authors/michael-de-yoanna
[2] http://denver.bizjournals.com/denver/stories/2009/01/19/daily43.html?ana=e_du_pap
[3] http://www.denverpost.com/business/ci_11521771
[4] http://www.denverpost.com/headlines/ci_11532509