Is Bankruptcy Back on Airlines' Itinerary?

Updated with closing share prices.

Bankruptcy chatter has resurfaced in the airline industry.

Perhaps that is to be expected. Airlines benefitted from a round of bankruptcy filings in the middle part of the decade. Now, despite cutting costs by significant margins, they are caught in a vicious cycle of low business travel demand, intense pricing competition for leisure passengers and rising fuel prices.

Today, shares of the seven biggest airlines are all priced in the single digits. Among the three lowest priced airlines, US Airways(LCC Quote) closed Thursday at $2.46, down 68% this year. United(UAUA Quote) closed at $3.31, down 70%. And American(AMR Quote) closed at $4.22, down 60%. ...