Low Growth, High Profits
This article presents financial results of the 2006 U.S.-based airline market. It was the first year that the market as a whole returned from a negative net income spawned by the terrorist attacks on the World Trade Center in New York City in 2001. Airlines, initiating rigorous cost-cutting measures to all aspects of their businesses unrelated to fuel consumption, have, excluding Northwest and Delta Airlines which are filing for bankruptcy due to insolvency, recovered to a net operating profit of US$4.29 billion, up from a $582.4 million loss in 2005. Southwest Airlines, which has been profitable for 34 years in a row, led the gains with a $499 million profit, with projections for a 15 percent gain in the next year. While US Airways posted gains, JetBlue reversed its downward trend from a $20.3 million loss in 2005 to a $1 million loss in 2006. Alaska Air, while technically posting a net loss, had made large purchasing and labor agreements that were anomalous and will not effect 2007 projections, the article explains.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/00022543
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Authors:
- Karp, Aaron
- Publication Date: 2007-3
Language
- English
Media Info
- Media Type: Print
- Features: Tables;
- Pagination: pp 57-59
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Serial:
- ATW: Air Transport World
- Volume: 44
- Issue Number: 3
- Publisher: Penton Media
- ISSN: 0002-2543
Subject/Index Terms
- TRT Terms: Airlines; Costs; Finance; Operations; Profits; Revenues
- Subject Areas: Administration and Management; Aviation; Economics; Finance;
Filing Info
- Accession Number: 01047204
- Record Type: Publication
- Source Agency: UC Berkeley Transportation Library
- Files: BTRIS, TRIS
- Created Date: Apr 30 2007 8:07AM