Fuel costs to slam airlines in 2005

“We are projecting additional losses of at least $5 billion in 2005,” said James May, president of the Air Transport Association. “If oil stays high and our taxes with it, I expect more jobs lost, more flights cut and more airlines in crisis.”

Testifying before a House subcommittee looking at the impact of high energy costs, May forecast U.S. airlines will pay an extra $6.8 billion for fuel this year than in 2004.

As a result, May said the airline industry is losing an estimated $17,000 every minute.

Eleven of the 12 passenger airlines rated by Standard & Poor’s are considered “junk bond” quality, with only Southwest Airlines Inc. considered investment grade, he said.

MSNBC