Hurricane To Take Toll On Ailing Airlines

Hurricane Katrina today is lashing the northern coast of the Gulf of Mexico, causing operational problems for airlines and concerns of even higher oil prices. Considering disruptions to oil production in the gulf, possible damage to offshore facilities and the expected jump in crude oil prices, the storm "could be enough to send Delta Air Lines and possibly Northwest Airlines into Chapter 11," said Helane Becker, analyst with The Benchmark Co.

The price of a barrel of crude oil today for the first time peaked higher than $70 in overseas trading. At press time, the price on the New York Mercantile Exchange had jumped nearly $3 and was near $69. At the same time, most major airline stocks also are down in morning trading.

Meanwhile, many airports in the region remain closed, including New Orleans' Louis Armstrong International Airport, which has indefinitely cancelled all departures and arrivals.