US airlines on road to recovery

Saturday, 20 Jul, 2006 0

The long-troubled North American airline industry appears to be heading towards profitability again, according to second quarter profit reports from American Airlines and Southwest Airlines.

American posted second-quarter profits of US$291 million or US$1.14 per share, five times higher than last year’s $58 million and 30 cents a share.

Chief executive Gerard Arpey 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.”

Meanwhile Southwest Airlines reported a doubling of second quarter earnings, with net profits rising to US$333 million from US$144 million the year before.

“We generated higher recent yields to offset significantly higher jet fuel prices,” said chief executive Gary Kelly.

Southwest said its 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.

Kelly said the company should easily exceed its goal of increasing earnings by 15% in 2006.

Report by David Wilkening

below social share icons

Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.

Queensland – where it’s rude not to stare Here in Queensland, there’s plenty to do. But there’s even more to...

Jet2.com is the UK’s third largest airline, flying from ten UK airports to more than 60 destinations across Europe and beyond....

A state like no other. A place known for togetherness, celebration and happiness. In Louisiana, we call it “joie de...

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels...

We are a small-group adventure travel operator offering more than 750 tours in 100 countries, on all seven continents. Our...

Take your clients’ vacation to the next level at Universal Orlando Resort™. With three amazing theme parks – Universal Studios...

The Polish Tourism Organisation (Polska Organizacja Turystyczna – POT) is one of several dozen national tourism organisations operating in the...

Ensuring our guests have an unforgettable experience while sailing with us is paramount; however, your health and safety remains our...

Consisting of the three Maritime provinces of New Brunswick, Nova Scotia, and Prince Edward Island as well as Newfoundland and...

Discover Sarawak Revealing a side of Asia unlike anywhere else, Sarawak offers an alternative for those seeking humble authenticity far...

Since 1932, P&O Cruises has offered Aussies and Kiwis the opportunity to take to the seas and have the holiday...

Destination British Columbia (Destination BC) is a Provincially funded, industry-led Crown corporation that supports a strong and competitive future for BC’s...

Arival advances the business of creating amazing in-destination experiences. We provide events, insights, and community for creators and sellers of...