Rising fuel costs caused financial headaches for many airlines (especially those in the US) and even airlines like NW
, which had hoped to show a profit ended up losing money. CO
had a small operating profit, but charges associated with the retirement of the MD80 fleet resulted in a loss for the quarter. AA
did squeak out a small profit, but even low-fare darlings such as Southwest and JetBlue did not do as well as expected.
In the US, Delta is probably losing the most money at the moment and unless some things change, and very quickly, DL
may be headed to the bankruptcy court. And while the situation as UA
and US seem to be improving, both airlines still have huge financial issues to work out. Over in Europe, Alitalia is in the most trouble at the moment, with the Italian government providing emergency financing to the airline to avoid a financial disaster - the EU allowed the financing to go through, eventhough they are against government support of air carriers.