Foiled plot likely to hurt struggling US carriers

Washington, Aug 11 (UNI) US airlines, still recovering from years of long struggle against high costs and empty seats, face new turbulence with British authorities foiling a terrorist plot to blow up airplanes over the Atlantic.

Passengers throughout the US yesterday faced long lines and delayed departures because of heightened security measures. Multiple flights in and out of Britain were also cancelled.

Investors worry that the terror plot might scare consumers enough to cancel travel plans, while lengthening delays at airports and increasing security costs for airlines. However, analysts don't sound very concerned about the industry long term.

''It is too soon to judge what, if any, lasting impact the events will have,'' Daniel Jester, an economist at Economy com. Tom Parsons, chief executive of Bestfares com said Americans would pause to reconsider travel plans because of the terror plot but ultimately would return to the skies.

Airline shares were roiled early in the day but recovered, according to the Washington Times. United Airlines parent UAL Corp dropped 31 cents to 23.52 dollar a share on the Nasdaq Stock Market.

On the New York Stock Exchange, Continental Airlines slid 35 cents to 23.86 dollar; US Airways fell 26 cents to 40.52 dollar; AMR Corp, American Airlines' parent, stayed even, closing at 20.29 dollar; and Southwest Airlines moved up 4 cents to 16.94 dollar.

US airlines have recently turned a financial corner, bolstered by robust passenger demand, cost cuts and industry consolidation.

UAL last month announced its first real quarterly profit since 2000. AMR, Continental Airlines, Southwest Airlines and US Airways Group also posted profits for the quarter. Travel-related businesses downplayed possible fallout from the thwarted terror plot.

Duty-free stores and other retailers with a heavy presence at airports also prepared for some disruptions to their businesses after the Transportation Security Administration announced that no liquids or gels would be allowed in carry-on luggage. That meant no duty-free liquor or perfumes. ''There is definitely a concern,'' Simon Falic, chairman of Duty Free Americas, which operates 90 stores across the country said. ''Hopefully, it won't last too long.'' But Rep Peter Hoekstra, Michigan Republican and chairman of the House Select Committee on Intelligence, was not so sanguine. The situation, he said, ''eliminates the days of carry-on baggage.'' UNI XC PR VC1907