- 2003: airlines were coping with the aftermath of September 11, 2001, the war in

Iraq, a depressed world economy, high fuel prices, and increased competi- tion from
low-cost carriers

- Beginning of 2004: the primary focus of most of the major airlines was sur- vival in
the short term
most of the major airlines were experiencing negative free cash flow and were
heavily indebted

- Between 1990 & 2001: the US airline industry as a whole did little better than break
even and all of the major airlines were earning negative EVA during the period.
Some specialists noted that those air- lines that had kept their costs far below those
of the majors – Southwest, Air Tran, and JetBlue – had shown growth and
profitability that was a marked contrast to that of the major airlines