Chris Jasper/LONDON
Most large US carriers have reported a stronger-than-expected performance for the first quarter of this year on the back of strong domestic demand and improving international markets. Bad winter weather took its toll, but while several airlines posted poorer results than for the same period last year, most exceeded the forecasts of Wall Street analysts.
Further cheer will have been provided by the announcement from the USA and UK that negotiations over a new air services agreement between the countries are due to resume on an informal basis next month.
American Airlines was hurt by the February pilot "sickout" over its take-over of Reno Air, while several other carriers admit they were buoyed by the resultant floating traffic. American's result was down 45% to $158 million and a US judge has ordered the Allied Pilots Association to pay the airline $45.5 million in damages for its role in the action. The union has appealed.
Though TWA and Northwest Airlines took operating losses in the first quarter, the former was able to point out that the result was still its best in 10 years, while Northwest says it is still recovering from a strike last year.
Both loss-makers, together with United Airlines and US Airways, beat analysts' predictions, although the latter pair still saw in profits fall.
Domestic carriers America West and low-cost Southwest, together with Alaska Air, turned in improved profits.
US and UK transport secretaries Rodney Slater and John Prescott reached agreement on the resumption of open skies talks at a meeting in Washington last week. The informal discussions are expected to lead to formal negotiations taking place in June.
Source: Flight International
