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Thu, Oct 11, 2001 - Page 19 News List

ABN Amro says airline industry rally a sucker bet

Even well-managed airlines with plenty of cash on their balance sheets and popular routes, such as Southwest and SkyWest, make sense only for investors who can wait at least two years for their returns

BLOOMBERG , NEW YORK

And last week, major carriers including Delta, United and American slashed fares as much as 50 percent to lure back passengers as traffic dropped more than 30 percent in September.

Phil Condit, chief executive of No. 1 aircraft maker Boeing Co, said half of all US airlines may be bankrupt by December.

AMR slipped US$1.04 to US$20.16, 32 percent below its Sept. 10 closing price. Delta lost 63 cents to US$26.88, and UAL dropped 62 cents to US$17.72, off 28 percent and 43 percent, respectively, since the attacks.

The Amex Airline Index dropped 2.1 percent Tuesday, with eight of 10 members falling.

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