US airlines poised for long overdue recovery?
At long last, there were indicators that the long-troubled North American airline industry may be speeding towards profitability again, according to reports from American and Southwest.
The US’s leading carrier, American, posted second-quarter profits five times higher than the same quarter of last year.
American posted a second-quarter profit of US$291 or US$1.14 per share, compared with last year’s $58 million and 30 cents a share.
American Chief Executive Gerard Arpey was cautious. In a statement, he said:
“Our performance indicates very clearly that we are on the right track, but also demonstrates — just as clearly — that we have more work to do.”
Discount carrier Southwest Airlines also reported a doubling of second quarter earnings, with net profits rising from US$333 million from US$144 million the year before.
“We generated higher recent yields to offset significantly higher jet fuel prices,” Southwest Chief Executive Gary Kelly said in a statement.
Southwest has tried to overcome rising fuel prices with higher fares.
“In the short term, the trends appear positive,” said Airwise News.
Southwest said third-quarter bookings are strong and that the increase in operating costs, including fuel, should be less than the 4.9% rise in the second quarter.
Mr Kelly said the company should easily exceed its goal of increasing earnings by 15% in 2006.
Report by David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports