The US government hinted it could support industry hit by last week's terrorist attacks.
Continental Airlines, the US's fifth largest carrier, yesterday announced it is to cut 12,000 jobs in the wake of falling reservations. It also said it would cut 20% of flights, a move copied by American Airlines, United Airlines, Delta Air Lines and Northwest Airlines.
Vice president Dick Cheney said: “I think we're very interested in finding ways to make certain that, in this particular instance, there's no permanent damage, if you will, to our civil aviation industry. It's very important.”
Analysts Standard & Poor's identified insurers and airlines as the two industries most likely to suffer as a result of last Tuesday's attacks.
Estimates have put the initial claims bill at more than £10bn (£7bn).
