Airlines Just Miss Record For Revenue And Ten Year High for Profits

Transportation

Published: July 29, 2010 11:22 am

Last Updated: March 11, 2020 12:48 pm

For the 2^nd quarter 2010, the nine largest airlines collectively reported $1.86 billion in net profits on $31.7 billion in revenues (net profits exclude $713 million for special items).

The Q2 revenue was the 2^nd highest in history and just shy of 2008’s Q2 $33.3 billion record.

The Q2 profits missed the decade high set in 2007 by only $8 million. Q2 revenue and profits were slightly higher than AirlineFinancials.com projected earlier in the month.

American (AMR) as projected was the only major airline to report a loss for the recent Q2.

Based on net income margin performance ex-special items, Alaska (NYSE: ALK) led the industry

at 8.6%. The rest of the airlines were:

US Airways (NYSE: LCC) 8.36%

United NASDAQ: (UAUA) 8.33%

Continental (NYSE: CAL) 6.93%

Southwest (NYSE: LUV) 6.82%

Delta (NYSE: DAL) 6.72%

Air Tran (NYSE: AAI) 5.53%

JetBlue (NASDAQ: JBLU) 3.19%

American (NYSE: AMR) -.19%

Average Q2 margin for the industry was 5.87%

See following chart for selected Q2 revenue and income performance.

AirlineFinancials.com expects continued strong performance for the airline industry through at least

the current 3rd quarter.

# # #

Disclosure- The above opinions and comments should not be used to determine the worth of any stock

or investment. At the time of writing, the author and his family did not hold stock and/or derivative

positions in any of the airlines covered in this article.

_____________________________________________________________

Robert Herbst is an independent airline industry consultant. He is the founder of AirlineFinancials.com

which provides airline industry analysis and commentary for major US carriers. In addition to his

consulting work, Mr. Herbst was a commercial pilot from 1969 until January 2010. His aviation experience

and financial background provide a unique analytical perspective into the airline industry.

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.