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Are Airlines Going Bankrupt Again?

Domestic fare levels are now largely being set by JetBlue, AirTran and Southwest based upon their cost structures. As a result, the low cost carriers are steadily gaining domestic market share vs. the legacies.

Southwest has benefitted greatly from its fuel hedges, which are now liquidated--its airline business is marginally profitable now, as its costs are above those of AirTran and JetBlue.

It is fairly easy to project that these trends will continue, and the least profitable airlines (e.g. UAL, etc.) will eventually seek bankruptcy protection once again; their capital assets are being eroded at rapid rates.