Swissair says it cannot guarantee flights

Troubled airline Swissair said today it cannot guarantee flights for the rest of the week.

Troubled airline Swissair said today it cannot guarantee flights for the rest of the week.

Callers to the Swissair booking line were told the carrier could not confirm passengers with flights booked this week would be able to fly.

Swissair is facing bankruptcy after the September 11th attacks in the United States triggered a passenger slump and threw the airline industry into chaos. The airline said losses could amount to billions.

Booking agents said Swissair hopes to be able to provide its scheduled service and advised passengers against making alternative bookings with other airlines. The airline hopes to provide more information Tuesday, callers were told.

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Shares in Swissair and Crossair, in which Swissair is the majority stakeholder, were suspended today in Zurich until further notice, ahead of a crisis meeting between Swissair executives and Switzerland's government.

To keep the company's planes flying last week, the Swiss cabinet guaranteed third-party insurance claims in case of war-related damage. Many other governments also are guaranteeing insurance.

The losses since September 11th have added to the increasing pressure facing Swissair in recent months after its failed expansion strategy led to a loss of $1.79 billion in 2000.

On Sunday, Switzerland's largest banks, UBS and Credit Suisse Group, said they would take part in a rescue package for Swissair, worth $617 million.

AP