There is a ray of hope for passenger airlines:
Delta Air Lines and US Airways, two of the largest U.S. airlines,
Wednesday reported earnings in the last quarter of 2011, flying in
the face of soaring fuel prices.
They managed to make ends meet through a mix of ticket price
increases and capacity reduction that boosted seat occupancy to up to
80 percent while fuel prices climbed nearly 30 percent over the
same period in the previous year.
The markets rewarded the two companies' stock Wednesday by bidding
up share prices.
Delta Air Lines posted profits of $425 million, while the
smaller US Airways managed $18 million.
The figures were particularly impressive considering that rival
American Airlines recently filed for bankruptcy protection, weighed
down by fuel and labour costs. The airline is currently trying to
make a new start.
The good news for airlines was that passengers were not
discouraged from flying despite higher ticket prices. Sales rose by 8
percent for both airlines, to total $8.4 billion for Delta
and $3.2 billion for US Airways.
US Airways CEO Doug Parker said demand remains high, and his Delta
colleague Richard Anderson also appeared confident for this year.
The world's largest airline, United Continental, is to post its
results Thursday.
