US majors earn $1.45 billion in second quarter

By Aaron Karp | August 18, 2010

Delta 757. Photo: Courtesy, Delta Air Lines.

With Delta Air Lines leading the way with a $467 million second quarter profit, the nine largest US passenger airlines posted cumulative net income of $1.45 billion for the three months ended June 30, turned around from a net loss of $556 million in the year-ago period, ATW calculated.

The carriers enjoyed an 18.5% year-over-year rise in combined revenue to $31.47 billion, outpacing a 9.5% climb in expenses to $28.85 billion that was mostly attributable to higher fuel costs. Operating income was $2.82 billion, significantly widened from a $182 million operating profit in the year-ago period.

All nine carriers were profitable on an operating basis and only American Airlines incurred a net loss (ATW Daily News, July 22).

US majors' collective second quarter capacity was flat at 217.9 billion ASMs while traffic rose only 1.6% to 182.06 billion RPKs, producing a load factor of 83.5%, up 1.3 points. The nine airlines' average yield jumped 14.4% to 13.36 cents as RASM lifted 17% to 11.92 cents and CASM grew 9.6% to 11.33 cents. Excluding fuel, CASM increased just 1.9% to 7.66 cents.

Discuss this news 12

17 Aug21:03

yay DL!!!

By Anonymous

yay DL!!!

17 Aug21:11

Yay DL, but hats off to UA,

By Anonymous

Yay DL, but hats off to UA, which posted by far the best margins and very dramatically improved performance metrics. With Smisek at the helm of UA/CO later this year they'll be a powerhouse.

17 Aug22:45

All on the backs of airline

By Anonymous

All on the backs of airline employees suffering from a 40% paycut. Doesn't say much about the forboding showdown coming.

Labor is VERY unhappy at almost every major airline in America.

18 Aug06:39

Airline employees and other

By Anonymous

Airline employees and other unionized labor are not the only people suffering from pay cuts these days. Also, these Q2 profits are just a drop in the bucket compared to the losses of the past couple of years.

18 Aug08:14

Can't see this state of

By Anonymous

Can't see this state of affairs lasting long if the US economy goes backwards any further.

18 Aug10:39

"VERY unhappy Labor at almost

By Anonymous

"VERY unhappy Labor at almost every major airline in America" should quit and join the huge numbers of current unemployed. Then people who are happy to have a job can work for airlines and enjoy the perks and a paycheck.

18 Aug16:21

Dear Anonymous, It's

By Chip

Dear Anonymous,
It's worthless punks like you who lay down for corporate America to rape and pillage. Profits are way up; where's the money? All at the VP level! Not the line swine, no breaks for the traveling public, just those VP's laughing all the way to the bank. Quit and join the unemployed? Get real! Perks? Perks? Say that like former Colts coach Jim Mora. There are no perks at airlines anymore; the planes are FULL. I buy a ticket to ride! And, I've been in that unemployment line too; workers still have to stand up to greedy management ; you got it all wrong. As for that paycheck' it's the same as 1995's. This is way out of line! And be careful what you wish for; you want $19 tickets, you'll get them with crew and maintenance with low or no qualifications. Foreign pilots, 3rd world aircraft parts, and worse. Airlines can at least pay their personnel fair compensation. Why should all the money only go to the corporate geeks?

18 Aug19:59

Well said Chip. I am an A & P

By Batman527

Well said Chip. I am an A & P mech with many years at 3rd party MRO's and it's not pretty.

18 Aug22:32

A great news. The reported

By GOVIND

A great news. The reported growth is primarily due to severe cost cuts that will not support sustainable growth. When the airlines again gets into expansion/growth mode and if the economy goes back any further. this great news will turn out to be a bad one.

19 Aug10:02

Corporate America loves to

By Sara

Corporate America loves to see workers and the unemployed at odds with each other - arguing that any job is better than no job. That's absurd. That is how they keep lowering the standards and arguing that the jobs need to be shipped overseas. Unions protect jobs and create careers - that provides opportunities for the unemployed and makes sure we can all contribute to the economic prosperity of our country. Don't buy into their argument that any job is better than no job. You don't hear the CEOs saying that about their bonuses - no, they get "what the market bears" for their "valuable work" even if the companies are reporting losses. Those of us on the front lines are valuable as well - not just for the companies were we take our pride in a job well done to work with us - but also as contributing members of our communities. We are stronger as a country when we lift the standards for all Americans. That's the principle this country was founded on. Reject their efforts to make you think, "any job is better than no job." That's what got us into this economic mess - and we can't afford to stand for it any more. I stand with you at work - and I stand with you on the unemployment line. United we are stronger.

21 Aug20:23

Sara, you make many fine

By IguanaDC3

Sara, you make many fine points UNTIL you assign duty & credit for improving things herein the USA to unions --- and esp' to unions alone. The day that unions, either solo or in conjunction with others, make for a prosperous ANYthing on this planet (hello Europe, esp' Greece!) is the day that big fat cold icebergs float down the rivers of Hell --- & don't melt.

31 Aug15:08

Sara, you are nuts. What got

By Anonymous at work

Sara, you are nuts. What got us into this "economic mess" is unions driving up the costs of U.S. labor. Those same unionized laborers spend their money at Walmat on products made overseas. You want paid top dollar but want goods as cheap as you can get them. How can a man making $15 an hour afford a car made by a man making $25 an hour? He can't, so he buys foreign made goods and out of the country goes the money and eventually the jobs. Basic economics.