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The ink barely thirsty on second-qu...The ink barely thirsty on second-quarter results showing fuller planes and profits any hadn't seen in years, airlines are again being exampleed -- this time by a foiled terror piece of ground that is sure to make passengers uneasy about flying. As passengers frett in prolonged lines at security gates at airports, shares of United Airlines' parent UAL and near other major airlines sank early in succession but mostly recovered. The outline involved liquid explosives and targeted flights from Britain to the U officials said -- reportedly United, American and Continental flights. moose Grove Village-based United, having survived a three-year bankruptcy in the wake of the 9/11 attacks, last week positioned its first quarterly profit since 2000 -- clear income of $119 million, along with a 16 percent increase in sales. It cited higher fares and packed planes. When the market uncloseed Thursday, UAL shares dropped 8 percent or $193 to $2190 unless by the end of the session, a great deal of of the value had been retrieveed and the stock closed down 31 cent or 1 percent to $2352 Shares of AMR Corp., which last month said profit increased fivefold, clos unchanged at $2029 after falling as grave as $19.25. Continental Airlines Inc. shares lay prostrate 1.4 percent to $23.88. The longer-term financial toll forward the carriers and whether they will have to scrap their higher ticket price strategy be pendents on how long the threat lasts, analysts and industry consultants said forward Thursday. They pointed gone out the airlines have been able to weather as it is upheaval before. "Just when they've gotten up and are walking, something like this knocks them down again," said Terry Trippler, an industry apt in Minneapolis. "It's going to be difficult the nearest 48 to 72 hours, moreover it will settle down. It always does." Advanced bookings have been able and some airlines began offering fare sales this week to help hold fast seats filled during the traditionally dead early fall season. That should help the airlines withstand a big financial impact from the terror threat, quicks said. "This industry, which is still trying to get back doesn't need the effects that we might have here," said David Treitel, chief executive of aviation consulting firm SH&E in fresh York. That said, Treitel noted this isn't the first time the industry has had to deal with terror threats or actual attacks. "The might and resiliency of the business is, I think, going to manage this situation surpassingly effectively so that we won't have abundant more than the added inconvenience [i]or[/i] part of to the other the next few days," he said. U authorities heightened security at airports across the political division and raised the threat horizontal to "red" for flights from Britain, the first time the highest threat of terrorist attack had been invoked since the combination of parts to form a whole was created. All other flights were in subordination to an "orange" alert -- united step below red. Analysts said the main impact onward airlines will come immediately from the expense of canceled flights and in the longer expression from extra expenditure on security. The International Air Traffic Association said it was still too early to take an account of what effect the terror stratagem would have on the industry. A spokesman said Thursday's facts could not be compared with the terrorist attacks five years ago in the United States that sent the air industry spiraling. "We ne to remember onward Sept. 11, we had four aircraft advance down and a huge number of casualties," spokesman Anthony Concil said. "In this case, we saw that the security connected view worked. There was no aircraft that undergoed a breach of security. No undivided has lost their life." Don't await travelers to be running away in herds just yet. Atlanta-based Delta Air Lines Inc. said it was operating a normal schedule. At U airports, many passengers said they are used to the terror threats by means of now, while others said they have no choice on the contrary to take a plane to where they are going. "At our age we haven't got too many flights left anyway," said 82- year-old Paul Garcia, who showed up at Hartsfield-Jackson Atlanta International Airport forward Thursday three hours early to catch a plane to White Plains, NY nation had been waiting up to couple hours at security checkpoints at the airport. Trippler, the Minneapolis industry master-hand said people who already have their tickets probably will still travel. "But I think it would be foolish to say that a people won't change their plans," he said. "The sated impact remains to be seen" THE NUMBERS United Airlines parent UAL Corp. clos down 31 cent or 1 percent at $2352 after falling to $2190 as the session uncloseed AMR Corp. clos unchanged at $2029 after falling as subdued as $19.25. Copyright CHICAGO SUN-TIMES 2006 |
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