U.S. Airlines May Lose Up to $13 Billion This Year

(Bloomberg) — U.S. airlines may lose as much as $13 billion in 2008 as surging fuel prices outpace fare increases, the chief of the Air Transport Association told a Senate committee.

This year’s financial results will be “on par” with the industry’s worst ever as carriers’ combined fuel costs reach $61 billion, ATA Chief Executive Officer James May said today. The record annual loss is $11 billion in 2002, according to the ATA.

“I don’t think anybody predicted this extraordinary jump in prices,” said May, whose group represents the biggest U.S. carriers. “It’s the sole issue, it is the sole issue,” affecting airlines’ financial performance.

Bloomberg