Travel Stocks Take Pounding

THE JOURNAL RECORD, September 18, 2001 | Go to article overview

Travel Stocks Take Pounding


NEW YORK (AP) -- With bankruptcies looming after last week's terrorists attacks, airlines and travel-related companies were punished Monday on Wall Street and three U.S. carriers responded by laying off a total of 14,500 employees.

After markets closed, US Airways Group said it would lay off 11,000 employees, America West Holdings said it will eliminate 2,000 jobs and American Trans Air said it will let go of 1,500 employees.

The industry is lobbying for a $20 billion federal bailout, having lost $1 billion already because of weak demand from nervous travelers, a costly two-day shutdown of the nation's air system and higher security-related expenses.

"The entire U.S. aviation system is in jeopardy," Stephen Wolf, US Airways chairman said in a statement.

An industry group said Monday as many as 100,000 layoffs are likely in coming weeks. Major carriers have already trimmed schedules by at least 20 percent and laid off more than 26,000 workers, including Monday's cuts.

The airlines' woes reverberated throughout the travel industry as shares of hotel, rental car and electronic ticketing companies became mired in the selloff.

Analysts say airlines are the most vulnerable over the long term.

"We do not believe every airline's survival is guaranteed under any circumstances," said Jim Higgins, analyst at Credit Suisse First Boston in New York. Higgins said the industry will lose at least $5 billion this year.

Continental laid off 12,000 employees, more than one-fifth of its work force, over the weekend.

American Airlines, the nation's largest airline, will announce layoffs later this week, a company official said on condition of anonymity. The exact number of layoffs will partly depend on the size of the federal bailout, the official said.

Shares of AMR, the parent of American, plummeted $11.62, or 39 percent, to $18.08 on the New York Stock Exchange. Shares of UAL, which owns United, dropped $12.90, or 42 percent, to $17.92 on the NYSE, where Delta plunged $16.74, or 44 percent, to $20.51 a share.

US Airways Group fell $6.05, or 52 percent, to $5.57, also on the NYSE. It announced the layoffs after the close of trading.

Electronic reservation firm Sabre's stock fell $15.54, or 39 percent, to $23.89 on the NYSE and rival Galileo International's stock tumbled $8.57, or 30 percent, to $20.03.

Online travel agencies trading on the Nasdaq Stock Market also were affected. Travelocity.com shares dropped $9.52, or 43 percent, to $12. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Travel Stocks Take Pounding
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.