Kitty Hawk Ceases Operations; Lays Off 500 Workers

Air cargo transporter Kitty Hawk Inc. said it and its subsidiaries will immediately cease all scheduled network air and ground operations, though will continue to operate air cargo charter operations.

The company laid off about 500 affected employees, Kitty Hawk said in a statement late Monday.

“Kitty Hawk’s financial condition has deteriorated significantly over the last year and the ceasing of network air and ground operations is necessitated by, among other things, a 25% decrease in year-over-year demand for its air product and a 15% year-over-year decrease in demand for its ground product,” the company said.

It said record high jet and diesel fuel prices also contributed to its inability to continue its network air and ground operations.

Kitty Hawk Inc. lost $11.6 million in the first quarter.