US And Foreign Carriers Say They Are Feeling The Crunch

It's not just passengers experiencing the pain from new security measures, air carriers the world over are complaining of lost revenue...

As ANN reported last month, London police foiled an attempt by terrorists to blow up aircraft on trans-atlantic flights. The investigation revealed terrorists were planning to use an explosive stored as a liquid prompting restrictions disallowing liquids in carry-on baggage.

Airline executives say the new rules make it harder -- and less attractive -- for customers to make overnight trips with only carry-on bags. And this is leading to lower-than-expected earnings.

Bloomberg News reports that Southwest, perhaps the busiest short-haul carrier in the US, claims it's revenue per seat will grow less than 10% in the third quarter -- Merrill Lynch estimates had pegged that number at 13.4%.

Both Contintental and US Airways report similar earnings reductions.

Executives with the UK's budget airline EasyJet said they've lost $7.6 million after cancelling 469 flights in the wake of the security alerts. But an Associated Press report shows that EasyJet upped it's pre-tax profit growth for the year from 40% to 50% -- that's $128.5 million.

FMI: www.southwest.com, www.continental.com, www.usair.com, www.easyjet.com