The top U.S. carriers will report their largest profit – nearly $4 billion – in a decade in fourth quarter earnings reports starting this week, according to estimates by industry analyst Web site AirlineFinancials.com.
The $3.95 billion profit will come on revenue of $122 billion from the eight largest U.S. carriers: Delta Air Lines (NYSE: DAL), American Airlines (NYSE: AMR), United (NYSE: UAL), US Airways (NYSE: LCC), Southwest Airlines (NYSE: LUV), JetBlue Airways (Nasdaq: JBLU), Alaska Air (NYSE: ALK) and AirTran Airways (NYSE: AAI).
Southwest Airlines is the largest carrier at Portland International Airport. Alaska Air is No. 3.
AirlineFinancials.com projects that United will report both the highest net profit ($1.5 billion) and revenue ($34 billion) figures for the year. Delta will be second with a $1.4 billion profit on $31.7 billion in revenue.
American is the only large carrier expected to report a loss, which the website projects will be $404 million on $22.2 billion in revenue.
While those are huge profit numbers, the top carriers have been battered with $35 billion in net losses since 2001, the website says. This also will be the first time in a decade that the industry reported three consecutive profitable quarters.
The airlines have turned things around by cutting capacity nationally over the past couple years -- a move that helped them regain pricing power – and by improving the amount of ancillary revenue they generate (such as by charging customers to check bags). The budding economic recovery also helped by increasing passenger demand.
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