Standard & Poor's has placed its ratings on 12 global airlines on creditwatch with negative implications, due to the risks arising from a conflict in Iraq.
Standard & Poor's credit analyst Philip Baggaley said: "Airlines, already battered by the effects of the September 11, 2001 attacks and their aftermath, now face further financial damage from a war.
"The airlines, particularly large U.S. hub-and-spoke airlines, have already been hurt by high fuel prices, an accelerating erosion in bookings on international routes, and, indirectly, by the depressing effect of uncertainty on business activity."
S&P said that the airlines are expected to face worsening financial conditions in the short term.
It suggested that even with a rapid US victory, the subsequent decline in fuel prices is likely to be less rapid than during and after the Persian Gulf War in 1991.
