THE US AIRLINE industry is on course for a record second quarter performance, with early signs of the upturn already showing in soaring profits at American Airlines and a turnaround at Trans World Airlines (TWA).
American's parent group AMR reports that profits leapt to $293 million in the quarter, up from a healthy $178 million a year ago. TWA, which has been among the weakest of the major carriers, also managed to achieve just over $25 million. That left the carrier showing a modest $11.8 million loss for the first half, compared with a loss of $118 million in the first six months of 1995 when it was still struggling out of bankruptcy.
Passenger traffic, has been booming across the US market, while profits have been boosted by the lifting of the ticket tax. Analysts suggest that this could have saved the industry as much as $800 million, although the prospect of its reimposition is raising concerns.
Among smaller carriers, Reno Air increased quarterly profits tenfold at $3.3 million, while Atlantic Coast Airlines earnings were two-thirds higher at $8.5 million.
Source: Flight International