US Airlines Expected To Profit Over Summer Season | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 11.28.16

Airborne 11.29.16

Airborne 11.30.16

Airborne 12.01.16

Airborne 12.02.16

Airborne Hi-Def On YouTube

Airborne 11.28.16

Airborne 11.29.16

Airborne 11.30.16

Airborne 12.01.16

Airborne 12.02.16

Wed, May 23, 2012

US Airlines Expected To Profit Over Summer Season

High Travel Demand And Falling Fuel Prices Cited

Airline stocks have been rebounding as investors expect that a combination of high travel demand will combine with softening fuel prices to boost industry profits. Airlines have been limiting the supply of seats and boosting prices for some time. Collectively, they imposed about a dozen broad fare increases last year and two so far in 2012 which has led to higher revenue per mile. For Delta and American the increase was 11 percent higher in April while US Airways increased 9 percent compared with a year earlier.

Reportedly, the higher prices aren't scaring away passengers, and flights remain more than 80 percent full. Ed Bastian, President of Delta Air Lines Inc. said last week that demand for summer travel was strong and "bookings appear to be in really good shape."

NJ.com reports that in addition to high load factors, airlines are benefiting from falling crude oil prices leading to cheaper jet fuel. The spot price for jet fuel fell 8 percent in the first half of May, according to government figures. Fuel is the airlines' biggest expense, eclipsing labor, so any pullback is a big help.

Airlines are continuing to keep a lid on passenger-carrying capacity. Last week, Southwest Airlines Co. announced that it would delay delivery of 30 Boeing jets by four years rather than expand its fleet.

FMI: www.drco.com/Default.asp  www.dot.gov

Advertisement

More News

Barnstorming: Saving Santa Monica¬Ö and Enhancing The Future of Aviation

As If We Didn’t Have Enough to Do, Another Critical Challenge Demands Our Full Attention It has been a brutal few weeks… starting with the loss of our dear friend, Bob>[...]

VSS Unity, The New SpaceShipTwo, Free-Flies For The First Time

Two Years After Tragedy, The Program Proves It Still Has The Right Stuff The newest SpaceShipTwo has flown free for the first time. According to the Virgin Galactic crew, "Our new >[...]

AMA Opposes Orlando City Council Drone Ordinance

Proposal Runs Afoul Of Federal Authority Over The Nation’s Airspace... The Academy of Model Aeronautics (AMA) sent a letter to the Orlando City Council in opposition to a pro>[...]

Aero-News: Quote of the Day (12.05.16)

"This represents culmination of many years of hard work and perseverance by the team here in the USA and back at base in Germany too, we’re literally over the moon.” So>[...]

AeroSports Update: AutoGyro Now Type Certificated In The U.S.

The FAA Has Granted Type Certification To AutoGyro For Its Factory-Built Calidus Aircraft It seems we hear a lot about new FAA type certification of airliners and corporate jets, b>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC