Clark Howard's Tips

The future of airlines after Katrina

Sept. 9, 2005

The airline industry has been severely destabilized in the aftermath of Hurricane Katrina.

The run-up in the cost of jet fuel and the availability of that fuel are just two of the concerns.

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Plus, the flights that aren't able to make it to Louisiana or Mississippi are causing even more confusing.

As a result, the cost of jet fuel is starting to create a list of winners and losers in the industry.

According to the Wall Street Journal, the airlines getting stronger in since the crisis include Southwest, JetBlue and AirTran.

Southwest is definitely the strongest of all of them.

Airlines in the yellow are Continental, Alaska Airlines and American. The future is uncertain with them.

Those that get the red light are Northwest and Delta. Northwest is in the middle of a strike but has continued to operate. In Delta's case, nothing good can come of this tragedy.

The unfortunate fact is that Delta faces a tough time because of the level of debt and the age of the aircrafts. Changes in the bankruptcy law that go into effect in mid-October could also influence things for the company. We'll keep you posted on what happens with this.

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