http://www.nytimes.com/2008/04/23/business/23air.html?ref=business

Surging Energy Costs Take a Big Toll on Airline Earnings

By JEFF BAILEY
Published: April 23, 2008
CHICAGO — The parent company of United Airlines, the UAL Corporation, reported a $537 million loss in the first quarter on Tuesday, bigger than expected, as a 51 percent increase in fuel costs overwhelmed furious efforts to raise fares at the country’s second-largest carrier.
UAL shares closed down $7.88, to $13.55.
Unless oil prices unexpectedly retreat, there is no relief in sight for airlines, and nearly the entire industry is expected to lose money this year.
United, based in Chicago, plans to reduce employment by 1,100 by the end of the year, as airlines begin a new round of layoffs. United increased the number of planes it plans to shed to 30, from an earlier estimate of 15 to 20, in hopes of constraining capacity and driving fares up further.
JetBlue Airways and AirTran Holdings, two formerly fast-growing discount carriers, also posted first-quarter losses. JetBlue, which operates from John F. Kennedy International Airport in New York, reduced its growth plans for the year, hoping to keep raising fares.
And AirTran, operating from Hartsfield-Jackson International Airport in Atlanta, said it would delay growth plans in the 16 months beginning in September. That move could help it raise fares and conserve cash.
AirTran, where shares have fallen in the wake of bankruptcy filings by some smaller carriers, said it would sell notes and stock to raise about $110 million and bolster its cushion against the downturn.