Site Admin

Joined: 17 Jun 2005
Posts: 949
Location: Carmel, IN

America West Airline Earns Profit on Fuel, Fare Strategies
Posted: July 22nd, 2005 12:01 PM EDT

STAN CHOE
Charlotte Observer, Distributed by the Associated Press

More people are flying on America West -- and at higher fares -- helping the hopeful merger partner of US Airways to a $13.9 million profit in the second quarter.

The profits beat Wall Street's expectations and were in stark contrast to the $388 million loss Delta Air Lines reported the same day. Analysts on Thursday congratulated America West on a strong quarter, highlighted by its industry-leading growth in per-unit revenue, or what it takes in to fly one seat one mile.

But many analysts are still skeptical that America West and the airline industry have broken out of a depression. Oil prices are still high, and analysts predict the increased costs will eat away at the revenue gains enjoyed this past quarter.

continued at: http://www.airportbusiness.com....jsp?siteSection=3&id=2813

Site Admin

Joined: 15 Jun 2005
Posts: 2316
Location: Indianapolis, IN

When you look at the price of oil over the past 3 months and then look at the airlines that turned a profit you have to be really impressed. If these companies can turn a profit in these conditions imagine what they can do when things finally (hopefully) become stable.

Site Admin

Joined: 17 Jun 2005
Posts: 949
Location: Carmel, IN

You know, I was thinking sort of the same thing. Why can some airlines earn a profit and others can't? Other than small differences in structure and labor costs, they're really not all that different. You can't blame it all on oil; I think some of it must be blamed on mgt.