Bankrupt!

US airlines have lost more than $30bn over the past four years. Edward Simpkins investigates why two more have just declared themselves bust

The misery began for the airline industry with the economic slowdown that followed the collapse of the dotcom boom five years ago. Then came the terrorist attacks of 9/11, the war in Iraq and the Sars crisis. And all the while, competition from the low-cost carriers has intensified.

The latest blow has been the rise in oil prices that started last year, which has been exacerbated by Hurricane Katrina – the storms disabled some US oil refining capacity.

The Telegraph