Additionally, American, Delta and Southwest have had quality control issues and had to cancel some flights.
And today, American announced that they are in a hiring freeze.
“American’s hiring freeze is the latest sign of trouble in the airline
industry. Skybus, ATA and Aloha Airlines have stopped flying in the past week
and are filing for bankruptcy protection. American, Southwest and Delta airlines
have all had to cancel flights recently to address safety concerns about some of
I know I’ve been tightening my belt, as have many of my friends and colleagues because of my financial concerns for the next year. When air travel is affected by oil prices to the point that so many airlines (including established ones) are having trouble, and yet, oil companies are posting record profits, it has to make you wonder. Are we are being forced into a recession? If oil companies were losing money and the airlines were in trouble, that would make some sense. Oil prices would be going up to help support oil production costs. But, given that oil profits don’t seem to be sinking (or maybe I’m not seeing something…) then are we in a manufactured pseudo-recession? And why?