Airlines tremble at prospect of $100-a-barrel oil

Beleaguered U.S. airlines seem to have slowly staggered to their feet since the terrorism and recession of earlier this decade. But credit agency Standard & Poor’s has come up with a worrisome scenario that could knock them back down: $100-a-barrel oil.

What S&P sees at the $100-a-barrel level isn’t pretty: Northwest and Delta airlines could be forced to liquidate; others could be pushed into Chapter 11 bankruptcy-court protection. Discount giant Southwest would likely see its remarkable profit streak halted. Industrywide, carriers would ground aircraft, cut service and lay off workers. Travelers could count on fewer choices, more travel hassles and higher fares.
USA Today