meanstreak
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http://www.airportbusiness.com/web/...SandP-predicts-huge-losses-at-AirTran/1$20768
S&P predicts 'huge losses' at AirTran
KELLY YAMANOUCHI; StaffThe Atlanta Journal-Constitution
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AirTran Airways has been downgraded by Standard & Poor's, which said the move reflects its view that oil prices are "unlikely to materially reverse course anytime soon."
"We think [AirTran] has enough cash to stay out of bankruptcy over the next year," according to the Standard & Poor's note by airline industry analyst Jim Corridore. But the rise in the cost of jet fuel is "likely to drive large losses" at AirTran this year and next year.
AirTran, which has its largest hub in Atlanta and is based in Orlando, was one of several airline stocks downgraded by Standard & Poor's on Tuesday.
Separately, UBS analyst Kevin Crissey said in a note that its survey of investors on the probability of bankruptcy at at-risk carriers showed that 46 percent believe there is a greater than 50 percent chance that AirTran could file for bankruptcy in 2009. The respondents were more pessimistic about US Airways and more optimistic about Delta, Northwest and Continental.
S&P predicts 'huge losses' at AirTran
KELLY YAMANOUCHI; StaffThe Atlanta Journal-Constitution
AirTran Airways has been downgraded by Standard & Poor's, which said the move reflects its view that oil prices are "unlikely to materially reverse course anytime soon."
"We think [AirTran] has enough cash to stay out of bankruptcy over the next year," according to the Standard & Poor's note by airline industry analyst Jim Corridore. But the rise in the cost of jet fuel is "likely to drive large losses" at AirTran this year and next year.
AirTran, which has its largest hub in Atlanta and is based in Orlando, was one of several airline stocks downgraded by Standard & Poor's on Tuesday.
Separately, UBS analyst Kevin Crissey said in a note that its survey of investors on the probability of bankruptcy at at-risk carriers showed that 46 percent believe there is a greater than 50 percent chance that AirTran could file for bankruptcy in 2009. The respondents were more pessimistic about US Airways and more optimistic about Delta, Northwest and Continental.
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