U.S. Carriers’ Losses Could Hit $10 Billion

U.S. airline losses in 2005 could reach $10 billion, mainly because of soaring fuel prices made worse by Hurricane Katrina, the industry’s chief trade group estimated.

To try to stem the red ink, major carriers plan to ask Congress next week for a one-year holiday from the federal tax on jet fuel to save $600 million, the Air Transport Assn. said.

Estimated losses for the year rose from $7 billion to between $9 billion and $10 billion, the association said.

Industry executives plan to make their tax relief request at a Senate hearing next week, a trade group spokesman said. Key lawmakers have already pledged to explore rolling back the jet fuel tax of 4.3 cents a gallon.