ST. LOUIS— U.S. airlines could see steeper losses than expected this year, due to the hijacking of two American Airlines and two United Airlines planes Sept. 11, according to . It’s possible the airlines, will, in fact, see their largest annual loss in the history of the industry. The major U.S. airlines were already expected to lose more than $2 billion this year, according to analysts. UBS Warburg analyst Sam Buttrick said in a research note Thursday that the terrorist attacks will further reduce travel demand, as well as increase security and fuel costs. Standard & Poors agreed with that assessment, and on Thursday put the ratings of all U.S. airlines on credit watch with negative implications. Buttrick estimates the attacks will cost the airlines $2.1 billion in 2001, with residual costs in 2002. Buttrick now expects the major U.S airlines to report a $4.4 billion loss for 2001, the largest annual loss on record. Larger carriers, long-haul flights, and operations on the East Coast, particularly New York will be hit the hardest, Buttrick said. BridgeNews
