Losses at US Carriers

SOUTHWEST AIRLINES (SWA) has incurred a third-quarter net loss of $140 million.  This compares to a $205 million profit in the same period in 2010.  However, the future looks rosier as SWA commented that the market price for fuel has rebounded since the September 30 end of the quarter “and our future fuel hedge portfolio has gained back over $300 million in value,” said Chairman, President and CEO Gary Kelly.  He reiterated that the carrier and AirTran Airways, which SWA acquired in May, plan to begin integrating next year, assuming the US FAA grants a single operating certificate and labour issues are resolved.  “The AirTran business has been very solid,” he said.
Meanwhile, AMR, the parent company of American Airlines, has reported a higher than expected loss for the third quarter, blaming the adverse impact of rising fuel costs and foreign exchange rates.  The corporation posted a deficit of $162 million, reversing the profit of $143 million in 2010.  “While the third quarter was challenging for American Airlines, we are taking aggressive actions to improve the company’s performance and strengthen its foundation for long-term success,” said AMR’s Chairman and CEO, Gerard Arpey.