Profits in the USA

A NUMBER of the major US carriers have revealed promising results for the end of the third quarter of 2010.  Delta Air Lines announced a $363 million net profit (as opposed to a $161 million net loss in 2009) and predicted it will achieve its first profitable fourth quarter since 2000.  CEO Richard Anderson said at a press conference that the positive three-month period was driven by “revenue performance, cost discipline and harvesting the synergies from the [Northwest Airlines] merger.”  He added that a great deal of the company’s future focus will be on “debt reduction, shrewd deployment of capital and cost discipline.”
Meanwhile, American Airlines has revealed that its third quarter results meant that it was profitable for first time since 2007.  It had a net income of $143 million (reversed from a $359 million net loss in 2009).  This is despite second quarter results which showed that it was the only one of nine US major carriers that was in the red.  “While there is clearly much work to do, our results show significant improvement in revenue and reflect our continued dedication to controlling costs,” Chairman and CEO Gerard Arpey said.
US Airways has also posted a third-quarter net profit of $240 million (compared to a loss of $80 million in 2009).  Its Chairman and CEO Doug Parker stated that it was the highest ever in a third quarter for the company including past performances by both America West Airlines and the former US Airways.  Achieving “record results” despite the economy only “slowly and begrudgingly pulling out of a recession” is “concrete evidence that fundamental restructuring has taken place” in the US airline industry, he added.
The new airline grouping of United and Continental were not to be left out.  In the last quarter of operating independently, United reported a third-quarter profit of $387 million, while affiliate Continental Airlines posted a net profit of $354 million, (reversed from an $18 million net deficit in the same period in 2009).  Other operators to announce good results have included Alaska Airlines, Southwest Airlines and JetBlue.
The upturn in economies is not restricted to the US mainland, as Hawaiian Holdings – the parent company of Hawaiian Airlines – has reported net earnings of $30.5 million.  “A tenth consecutive quarter of profitability has further strengthened us,” said CEO Mark Dunkerley.  “We’ve taken delivery of new aircraft and are on the doorstep of expansion into Asia with new services to Japan and Korea slated to begin in the next few months.”