Ailing Industry Shows Further Signs Of Health

In yet another indication of a rebounding airline industry, American Airlines announced profits for the second consecutive quarter.

In fact, airlines are doing better across the board. USA Today reports analysts expect industry profits for the July-September quarter to exceed a billion dollars.

That's good news for an industry battered over the last few years, and one that hasn't seen profits since 2000.

And the future continues to look rosy as well. One analyst pegs collective airline profits for 2007 at over six-billion.

So what's changed?

Fuel costs for one. The drop in oil prices has given everyone a big boost, but especially industries that use the most. Add to that airlines' reticence to increase capacity with a general economic upturn, and you have a recipe for profits.

Some analysts refuse to be swayed by short term profits though, choosing instead to focus on the industry's 40-billion dollar losses over the past five years.

But we say if they ever get their labor problems solved, the industry has no where to go but up!

FMI: www.aa.com