Most major U.S. airlines stayed profitable in the second quarter despite dramatically higher fuel costs. Delta, United Continental, US Airways, Alaska Airlines and JetBlue all reported quarterly profit in earnings releases late last month. An exception was American Airlines, which reported a net loss of $286 million blamed in large part on fuel prices. The story sounded similar across the Atlantic. Dublin-based low fare carrier Ryanair reported first-quarter profit of $201 million, a 1 percent bump over the prior year. “Fuel prices remain stubbornly high,” it said.
Airlines said their positive results reflect surprisingly strong consumer and business passenger demand despite higher fares, new revenue initiatives such as premium seating and ongoing cost-cutting and capacity controls. But such measures only partially offset fast-rising fuel prices, which are reaching levels airlines have come to expect and consider in their planning.
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