Airlines post fattest profits in 10 years
12-22-2010, 07:21 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Aug 2008
Position: forever fo
Posts: 2,413
Airlines post fattest profits in 10 years
By Aaron Smith, staff writerDecember 22, 2010: 10:10 AM ET
NEW YORK (CNNMoney.com) -- This year is shaping up to be the most profitable year for the airline industry in at least a decade. The bad news is that it costs a lot more to visit Mom.
Operating profits for airlines in the United States exceeded $7.1 billion in the first nine months of 2010, according to the most recent data from the U.S. Department of Transportation. That tally surpasses the industry's full-year profits going back to at least 1999, when airlines posted income of $6.8 billion over 12 months.
That's due in part to the fact that air fares are much more expensive this year. Fares jumped 13% since 2009, according to an average of domestic ticket prices compiled by the U.S. Bureau of Transportation Statistics. And that doesn't include new fees they've started hitting customers with the past couple years.
The industry's big haul is in stark contrast to 2008, when it lost more than $5.5 billion in the face of a double whammy: A recession that sent demand into a tailspin and fuel prices that spiked sky-high.
Carriers responded by cutting the number of flights they offered, slashing those with the fewest passengers. They packed the airplanes full so they wouldn't lose money on empty seats. And they added fees for services that once came for free, like checked baggage and in-flight food, to boost income.
see more below
Air fares keep rising as airlines hit fat profits - Dec. 22, 2010
NEW YORK (CNNMoney.com) -- This year is shaping up to be the most profitable year for the airline industry in at least a decade. The bad news is that it costs a lot more to visit Mom.
Operating profits for airlines in the United States exceeded $7.1 billion in the first nine months of 2010, according to the most recent data from the U.S. Department of Transportation. That tally surpasses the industry's full-year profits going back to at least 1999, when airlines posted income of $6.8 billion over 12 months.
That's due in part to the fact that air fares are much more expensive this year. Fares jumped 13% since 2009, according to an average of domestic ticket prices compiled by the U.S. Bureau of Transportation Statistics. And that doesn't include new fees they've started hitting customers with the past couple years.
The industry's big haul is in stark contrast to 2008, when it lost more than $5.5 billion in the face of a double whammy: A recession that sent demand into a tailspin and fuel prices that spiked sky-high.
Carriers responded by cutting the number of flights they offered, slashing those with the fewest passengers. They packed the airplanes full so they wouldn't lose money on empty seats. And they added fees for services that once came for free, like checked baggage and in-flight food, to boost income.
see more below
Air fares keep rising as airlines hit fat profits - Dec. 22, 2010
Thread
Thread Starter
Forum
Replies
Last Post
