Airlines May Hit Near Record Revenues in Second Quarter

Starting with today’s second quarter earnings release by Delta Air Lines and ending on July 29 with Southwest Airlines report, estimates the nine largest U.S. airlines will report an accumulated $1.77 billion in net profits on $31.5 billion in revenues.

This updated estimate is at the high end of the May 18 projection that the nine largest U.S. passenger airlines will end the second quarter with over $1.4 billion in profits and could increase to $1.8 billion if fuel prices remain at or below current levels.

Leading the way in estimated second quarter profit margins is US Airways at 8.17 percent followed by Alaska at 7.8 percent, Southwest at 7.74 percent, Continental at 7.67 percent, Delta at 6.46 percent, United at 6.25 percent, Air Tran at 5.65 percent, JetBlue at 3.04 percent and American Airlines at .03 percent. Average secnd quarter profit margin for all nine airlines is estimated at 5.63 percent, said. ("profit margin" is the ratio of net profits/total operating revenue.)

If AirlineFinancials.Com’s secnd quarter 2010 estimates hold true, excluding 2007, they will be the highest secnd quarter profits in the last 10 years. Further, 2010 industry revenues are estimated to be the second highest in the history of the airlines topped only by 2008. projects all of the airlines noted above will have strong revenue performance for the remainder of 2010. Excluding American and assuming fuel prices remain in the $75-$85 per barrel price range, the airline industry should see significant profits for the current thirdrd quarter.


FREE Virtual Event

Pivoting Back to Travel: Phase 4

Are you prepared to guide your clients through the “new normal” of travel? Join us December 15, 2020 from 1pm-2:20pm EST for Pivoting Back to Travel: Phase 4. The upcoming installment of our FREE virtual series will feature presentations from the Cayman Islands, Dominican Republic, and Seabourn on their most up-to-date travel procedures, health & safety protocols they’ve implemented to keep guests safe, activities that are open to visitors, what your clients need to know while on their trip and more! Visit www.pivotingbacktotravel to view the full agenda and register for your FREE pass.
Read more on:

Suggested Articles:

The LetsGetChecked program is an at-home COVID-19 test that incorporates a nasal swab and PCR lab analysis. Learn more here.

All Nippon Airways has signed onto IATA's 25by2025 campaign, which aims to shift key diversity and inclusion metrics across the industry. Learn more.

Delta's COVID testing program will be available on flights from Atlanta to Rome starting December 19, 2020. Here's what you need to know.