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.

Language

  • English

Media Info

  • Media Type: Print
  • Features: Tables;
  • Pagination: pp 57-59
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01047204
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Apr 5 2007 2:17PM