Delta Airlines announces that it will have huge lay offs and that they will not be small. Before they had filed bankruptcy the stock went under $1.00 per share. The latest hike in fuel costs are problematic and costing over $3.1 Million Dollars per day more and jet fuel is not coming down. Delta had already laid off 1000 people in Cincinnati. The entire airline industry predicts over 2 bankruptcies between now and end of year. Northwest has also filed bankruptcy and has just been delisted. Northwest is was looking bad even before the bankruptcy and delisting, with mechanical failures and a mechanics strike. Although it is hard to say how much of the mechanical issues are deliberate sabotage from striking mechanics and just very old Aircraft. After all, what Modern Airline would still be flying a DC-9? Delta Air Lines Inc. stock fell nearly 21 percent to 87 cents a share just prior to their bankruptcy, following a Wall Street Journal report that said the troubled carrier is only days away from filing for Chapter 11 bankruptcy protection. Now that it has filed, things look even worse, although many believe it may survive. Delta has lost $10 billion since 2001. Now with Hurricane Rita looking to a direct hit on Houston, the oil barrel prices spiked the most in one day of trading, than in any time in history; it is up four dollars. This latest increase in oil prices will probably prevent any of the larger carriers from emerging from their bankruptcies any time soon. Things are looking very scary for the Airline industry and Mother Nature will not seem to let up on the United States either, as she threatens even more disasters in our near future. Think on this. |
