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 10.31.14 ** HD iPad-Friendly -- Airborne 10.31.14 **
** Airborne 10.29.14 ** HD iPad-Friendly -- Airborne 10.29.14 **
** Airborne 10.27.14 ** HD iPad-Friendly -- Airborne 10.27.14 **

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

Airborne 10.31.14: SpaceShipTwo Lost, GAMA's 3Q/14 Report, AEA Counters FAA

Also: More TFRs, Pelton on Aviation Outreach, Type Clubs Speak Out, NGPA Leader Lost, KICT King Air Accident In a statement posted on the Virgin Galactic website, the company said:>[...]

SpaceShipTwo Suffers An 'In Flight Anomaly'

Two Pilots On Board, Witnesses Report Seeing One Parachute Virgin Galactic says that SpaceShipTwo suffered a serious 'in flight anomaly' during a test flight Friday.>[...]

Airborne 10.31.14: SpaceShipTwo Lost, GAMA's 3Q/14 Report, AEA Counters FAA

Also: More TFRs, Pelton on Aviation Outreach, Type Clubs Speak Out, NGPA Leader Lost, KICT King Air Accident In a statement posted on the Virgin Galactic website, the company said:>[...]

Airborne 10.29.14: Antares Launch Failure, GAMA Responds, Another 'Roadable'???

Also: Dragon Returns, Quadcopter Flown At Airliner?, Classic Aero-TV: Redhawk, Diesel Flt School Airplanes, WWII Bomber Found The unmanned Antares rocket built by Orbital Science C>[...]

ANN's Daily Aero-Linx (11.01.14)

Craig Baker's F-105 Site A well done site featuring all things Thunderchief. Great combat stories, photos, audio and video clips.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC