The beleaguered company had filed for bankruptcy protection in 2000, reorganized, and then emerged from Chapter 11 in 2002 to compete in the highly competitive air cargo market. Shipments of freight have declined as costs of jet and diesel fuel have risen. In the first six months of 2007, the Dallas/Fort Worth Airport-based airline had net losses of $19.9 million and is reported to have lost $34 million since January 2006.
Kitty Hawk filed for Chapter 11 protection in mid-October of this year, then shut air freight and ground operations two weeks later, eliminating 500 jobs. The company offered movement of heavy weight and oversized cargo, an expedited overnight and second-morning delivery product and time-definite ground freight.
The company indicated it had experienced a plunge of 25% in air freight operations and a 15% decline in demand for its ground offerings. A few months ago Kitty Hawk had said that it needed additional loans in order to fund its operations. No new money was forthcoming. As the company headed for delisting on the American Stock Exchange its per-share cost was at 9 cents.
