Airlines cruise to profits with new-found strength

Two years after US airlines were pounded by soaring fuel prices followed by the recession, the industry appears poised to post its first meaningful profit since 2007's third quarter, the Wall Street Journal reported.

The major US carriers will begin reporting second-quarter results next week, led by Delta Air Lines. Analysts expect all but one of the nine largest carriers - AMR Corporation's American Airlines - to be in the black for the quarter and all of 2010.

Analyst Michael Derchin of CRT Capital Group even foresees a slight profit for American, although Wall Street's mean estimate calls for a quarterly loss of three cents a share. Derchin forecasts that the largest airlines will report net income of US$1.7 billion in the June quarter, compared with a loss of nearly $1 billion a year earlier.

"Clearly, the economy is providing a considerable amount of lift for all... carriers," Delta President Ed Bastian said.
(Source:www.cargonewsasia.com)