STRONG RESULTS from Continental, USAir and others have led what promises to be a record third-quarter performance from the US airline industry.
Wall Street analysts, are projecting that industry operating profits, could climb to $2.3 billion for the quarter, once results are in from the other major carriers. In the third quarter of 1994, the industry made $1.6 billion.
Continental, which is partially responsible for the upturn, because of the cancellation of its low-cost CAL Lite experiment, ended the quarter showing net profits of $111 million - the highest in its 61-year history. The result leaves the airline with a $183 million profit for the first nine months, against 1994's loss.
USAir also continued its recovery by posting a third-quarter profit for the first time in seven years. The net profit of $43 million compares with 1994's loss of $180 million.
Seth Schofield, who has stayed on as chairman at USAir while the carrier considers takeover offers from American Airlines and United Airlines, confirms that the group is on course for a "profitable fourth quarter and a profitable 1995".
Northwest Airlines achieved another record, with net profits of $231 million in the September quarter. Revenues were up by more than 11%, on the back of a 10% rise in passenger traffic. Yields also edged up by another 3.7%. The American Airlines group reports a healthy rise in net profits, to $229 million for the quarter, with the airline operations contributing $109 million. Although operating figures continue to look strong, the group warns of a charge for its early-retirement programme in the fourth quarter.
America West also followed with its highest-ever third-quarter profit of nearly $22 million, bolstering plans to raise capacity by around one-third, adding at least eight cities to its network.
Source: Flight International
