Travelers back, but not airline profits
USA Today reported that “travelers are back, but airline profits aren’t.” However, Continental Airlines reported something rare: a fourth-quarter profit. The Houston-based carrier said it made a profit of $47 million in the last three months of 2003, but the airline admitted much of that came through the sale of its interests in Hotwire and Orbitz. Meanwhile, December 2003 air traffic levels matched air travel in December of 2000, marking the first month that passenger demand returned to pre-September 2001 levels. Despite that demand, airline revenue through the first nine months of 2003 was 25% below the year 2000, according to the Air Transport Association. USA Today quoted experts as saying a major reason was that free-spending business travelers are not going back to their old habits, but are instead booking more low-fare airlines.
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