High-Flying, High-Debt Airlines Will Be Forced Back Down to Earth, Again
Pretty remarkable, when you consider the level of debt each of these companies is carrying. When the market turns, as it always does, the heavy leverage will be a tremendous burden on the ability of all of these airlines to compete and survive.
Since the industry's deregulation in 1978 more than 200 air carriers have filed for bankruptcy. US Airways has done it twice. Delta Airlines did it in 2005 and, for United Airlines, it was in 2002. American Airlines was the last legacy airline to file for bankruptcy with its Chapter 11 petition in November 2011.
All borrowed way too much to be able to survive.
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