"AirlineForecasts concludes that if oil prices stay anywhere near $130/barrel, all major legacy airlines will be in default on various debt covenants by the end of 2008 or early 2009. The implication is that several large and small airlines will ultimately end up in bankruptcy, and of those, some will be forced to liquidate."
Looking at the list in the table on page 6, American is one of the airlines pegged to have some of the highest losses. $2.29 billion in '08 and $1.65 billion in '09 (with oil at $132 a barrel) [today $142 a barrel]. How can airlines possibly stay in business with those kinds of losses?