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ATA's bankruptcy expected to raise costs

April 4, 2008 10:40:34 AM PDT
Those planning to fly to Hawaii are recommended to buy a ticket as soon as possible. Now that two of the major airlines that provide service to the islands have gone out of business, experts said the costs are going up.

ATA filed for bankruptcy Thursday and cancelled all flights, and nearly all of ATA's 2,200 employees were laid off. Aloha Airlines declared bankruptcy earlier this week.

With the two major airlines gone, there will be more demand on the remaining carriers. ATA offered fairly reasonable fares compared to other airlines, which will also hurt Hawaii-bound travelers, one expert said.

ATA customers who bought their tickets by credit card can call their credit card companies to request their money back.

The Associated Press contributed to this story.

 

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