Analysts fear United also may file bankruptcy

The stocks of major airlines fell sharply Monday and there was growing concern that United Airlines, the nation’s second-largest carrier, could follow US Airways into bankruptcy.

Shares of United parent UAL Corp., which already had lost more than half their value since the start of July, sank another 27 percent to close at $3.80 on the New York Stock Exchange. They traded at $35 a year ago.

United has more than $2 billion in cash reserves, more aircraft than US Airways and a superior route system. But high costs, daily losses exceeding $1 million and lingering fallout from the 9-11 attacks threaten the same fate for United as its smaller rival if its recovery plan doesn’t take off soon.

Also Monday, US Airways got court permission to continue normal operations while it is under Chapter 11 bankruptcy protection.

U.S. Bankruptcy Judge Robert G. Mayer approved a $500 million financing package that US Airways can draw from while it reorganizes.

Genetic engineering: Industry to battle plan to label biotech foods

The food industry is mounting a major effort to scuttle the first attempt by a state to require labels on genetically engineered foods.

A measure that will be on the November ballot in Oregon would require labeling of all modified food and food additives sold in stores and restaurants, and any such food produced in the state.

The national coalition of food producers and retailers, biotech companies and agricultural groups has hired a Portland, Ore., consulting firm to put together what promises to be a multimillion-dollar campaign.

They are pitted against activists who worry that genetic engineering could cause unintended or harmful side effects.

Retail: Grand jury studying Kmart bankruptcy

The U.S. Attorney’s Office has impaneled a federal grand jury in Detroit as part of its probe into bankrupt Kmart Corp., and more than 20 subpoenas have been issued for witnesses, bank records and other documents, according to published reports.

According to the Detroit News, investigators want to unravel the facts behind the bankruptcy and determine whether former Chief Executive Chuck Conaway, former President Mark Schwartz or other former executives will face charges in connection with Kmart’s downfall.

Kmart filed for Chapter 11 bankruptcy protection on Jan. 22 after disappointing holiday sales and a fall in the company’s stock price. The company operates a store and a distribution center in Lawrence.

Wall Street: Midwest Grain profits dip

Atchison-based Midwest Grain announced Monday its earnings fell for the fourth quarter of the year. The company reported earnings of 7 cents per share compared to 19 cents per share during the same period a year ago.

Company officials said the decline was largely attributable to lower prices for ethanol fuel, which is one of the company’s major products.