The Airlines, Bankruptcies 'R Us
No. They're not all doing badly -- but some of those that have been around for a while aren't doing so hot. But Delta Air Lines has served notice it may have to file for Chapter 11 bankruptcy protection, citing high fuel costs and the need for greater pay concessions from pilots. In a securities filing Monday, Delta focused on the concessions being asked of pilots, who are the highest-paid in the industry. Delta wants the pilots to take 30-percent pay cuts and give up other concessions but the pilots have offered to take 9 percent and to forego a scheduled raise. The pilots' union issued a news release on Monday saying it wants to help cut costs and has tried to negotiate with management. Meanwhile, US Airways says it might have to file for bankruptcy a second time as the long-predicted airline recovery seems to be faltering. Although traffic is up, high fuel prices and cutthroat competition are keeping most airlines out of the black. Even consistently profitable Southwest is concerned about fuel prices but it's the budget-seat drain on revenue that's the biggest concern for the industry in general, according to industry analysts. Jamie Baker, an airline analyst for J.P. Morgan, told USA Today that airline revenue recovery has always matched general economic recovery but it's falling behind in this cycle.