While second-quarter traffic posted by some of the largest publicly traded regional airlines in the U.S. followed the prevailing patterns set by their mainline partners, some carriers reacted to the exercise in “resizing” better than others. So as the airline industry in general continues to slog through one of the most difficult periods in modern history, a number of regionals continue to turn a profit–even as their major partners do all they can to strip costs associated with service contracts.
While slashing employment rolls to reflect diminishing capacity has certainly played a part in minimizing red ink for some, replacing smaller-gauge jets in favor of larger equipment has proved just as vital to others, as has lowering aircraft rents by allowing high-cost leases to expire and negotiating new terms based on lower aircraft values. Of course, circumstances differed wildly at the various airlines, but, as usual, those who did the best job of containing costs emerged from the quarter with the strongest results.
