Airlines tickets in the US are now taxed at 44%, compared to around 25% pre-9/11/2001. Meanwhile, due to economic pressure and public opinion, the ticket prices keep falling while fuel prices have nearly doubled. The resulting economic fallout is not the fault of the airlines' business plans. Further, the airlines have been required to pay for many government ordered "security enhancments". At Hawaiian, my airline, management has said these were to the tune of $30 million - over 50% of the money we lost last year. The US government should be paying the added security costs. They require it - they pay for it.
Even though Hawaiian declared chapter 11 bankruptcy, we are in no danger of going into chapter 7. All the employee groups have given concessions in the last few months and management has asked the judge to honor these contracts. The bankruptcy is aimed at our aircraft lessors. We are currently paying well in excess (up to 50% higher) than the going market rate for our aircraft on leases signed pre-9/11/2001. Boeing and Annsett have bulked lowering the rates. Our mangement says that we will not have any schedule reductins and planned expansion in the fall will still happen. We have 93 pilots (out of 450) either on furlough or with furlough notices. The fall expansion should drop us to half that number on furlough so things are looking up. US aviation experts are saying that Hawaiian's chapter 11 filing was probably a very smart business move.
Having said all that, the war could cause all of the airlines' economic recovery plans to go down the crapper and put everyone in dire economic condition. While I support the war, the airlines should receive financial aid for losses suffered due to government policies and actions.