Airlines Face More Uncertainty

Something's got to give for U.S. airline companies.

A slew of factors have battered the industry. If external shocks such as the 9/11 attacks and the SARS outbreak were not enough, the industry has its own deadly dynamics -- tough price competition from low-cost upstarts and industry overcapacity -- which make it tough for any single airline to raise prices. Add to that sky-high fuel costs, and you have a recipe for disaster.

U.S. airlines likely will lose at least $6 billion in 2004, following a total of $23.21 billion in losses over the three previous years, according to the Air Transport Association of America. ...