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Airline Profits Soar
Airlines may have been pounded financially for the past decade, but changes to their business models over the past couple of years helped make the second quarter one of the best earnings seasons in the industry’s history.
According to AirlineFinancials.com, the nine largest airlines collectively reported $1.86 billion in profits on $31.7 billion in revenue during the three months ended June 30. The profits number excludes $713 million for special items.
No. 1 in profit and revenue during the second quarter was Delta Air Lines Inc., which recorded net income of $467 million on revenue of $8.17 billion.
The industry's second-quarter revenue was the second highest in history, just south of 2008’s second-quarter record of $33.3 billion, the website said. The second-quarter profits missed the decade high set in 2007 by only $8 million.
The positive earnings news is largely due to capacity cuts that carriers have made over the past couple of years, along with a tentative rebound in the economy that has spurred more travel. The combination of the two has given airlines pricing power.
More details on airline profits are available from the Triangle Business Journal.
Baysden writes for the Triangle Business Journal.
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