Airlines imposed drastic cutbacks today in an effort to avoid bankruptcy after last week's terrorist attacks, with three major carriers slicing schedules by 20 percent and Continental Airlines furloughing one-fifth of its work force.
The industry, already hurting because of the economic slowdown, is expected to lose billions of dollars before the end of the year. Analysts say that without a huge bailout from the federal government, even the largest carriers could go out of business.
"These actions are a direct result of the current and anticipated adverse effects on the demand for air travel caused by this week's terrorist attacks on the United States," Continental said in a statement. The airline said the costs of dramatically increased security requirements also forced it to cut back.
Houston-based Continental is the nation's fifth-largest airline and has more than 56,000 employees on its payroll.
"I guess everybody in the airline industry's had anxiety over this, so it's not totally unexpected," said Jim Moody, spokesman for the Independent Association of Continental Pilots, which represents 7,500 pilots for the airline.
American Airlines and Northwest also said they would run 20 percent fewer flights than they did before Tuesday's attacks on the World Trade Center and Pentagon.
Neither carrier specified how many jobs would be affected by their service cuts.
Minneapolis-based Northwest, the fourth-largest carrier, made the change today and said it would complete a review of its staffing needs by next week. American, based in Fort Worth, Texas, was the first company to announce scaled-back service.
"In light of the schedule reduction, Northwest is reviewing its overall staffing and other resource needs. The airline will complete this review next week," the statement said.
Analysts predict the industry will lose between $4 billion and $7 billion in 2001 because of the public's increased fear of flying, the shutdown in air travel over the past few days and the fewer flights and higher costs associated with new airport security measures.
Congress gave President Bush $40 billion today without hesitation to help rebuild from this week's terrorist attacks carried out by hijacked jetliners. Bush will be able to spend half that amount with virtually no congressional restrictions, although it was unclear how much of that might be allocated for the airline industry.
"The airlines simply won't be able to do what they're being asked to do without financial support," said Helane Becker, an analyst at Buckingham Research in New York.
The Teamsters union is working with airlines officials to set a meeting with President Bush, possibly on Tuesday, to pursue an emergency appropriations package for the airlines that would help prevent a "ripple effect" after Continental's announcement, union president James Hoffa said.
The nation's nine largest carriers have been losing between $100 million and $250 million per day since the nation's air space was shut down and then gradually reopened following Tuesday's events.
"To put that figure into perspective, we had estimated a $400 million net loss for the industry's third quarter before Tuesday's horrific events," Higgins said.
Also today, Boston's Logan Airport, where hijackers boarded the planes that destroyed the World Trade Center, reopened with officers in black SWAT uniforms and police dogs on patrol. Travel at other airports continued to creep back into service.
Travelers across the country faced long lines and delays as airports implemented mandatory federal security measures, including a ban on curbside check-in and limited access to ticketed passengers beyond security screening points.
With the reopening of Logan, Reagan National Airport at Washington was the only major U.S. airport still closed to travel. Federal authorities said its proximity to the Pentagon and other federal buildings created enough security concern to keep it closed for now.
Federal officials also reopened the skies to most private planes, but banned them from flying within about 30 miles of Washington, D.C., and New York City.

