By the end of this week, AirlineFinancials.com LLC, an established airline industry data, analysis and consulting service, is projecting the seven largest US airlines will have collectively reported $1.8 billion in profits from $36.9 billion in revenue for the recent 3rd quarter. This will be a record for 3rd quarter revenue and the 3rd consecutive year of Q3 profits, AirlineFinancials.com says.
"For full year 2012, we project these seven airlines will collectively report $4.2 billion in profits from a record $140 billion in revenues -- a paltry 3 percent profit margin. For the first time since the 1990’s, the industry will have annual profits three years in a row," Robert Herbst, AirlineFinancals.com founder says.
Individual airline projections for third quarter 2012, according to AirlineFinancials.com:
• United (UAL) - $463 million profit from 9.9 billion revenue
• Delta (DAL) - $797 million profit from $10 billion revenue
• American (AAMRQ) - $110 million profit from $6.4 billion revenue**
• Southwest LUV) - $ 97 million profit from $4.3 billion revenue**
• US Airways (LCC) - $157 million profit from $3.6 billion revenue
• JetBlue (JBLU) - $ 53 million profit from $1.3 billion revenue
• Alaska (ALK) - $162 million profit from $1.3 billion revenue
*Projections exclude special items and one-time charges
** Reported last week
Alaska and Delta had the strongest 3rd quarter performance while American and Southwest turned in the weakest, the company said.
Specific to American Airlines and their bankruptcy reorganization: AirlineFinancials.com believes there is a 70 percent chance that US Airways management will be successful in acquiring American within the bankruptcy.
"If American management successfully exits bankruptcy as a stand-a-lone carrier, we believe it is inevitable American and US Airways will merge together," AirlineFinancials.com said.