Military

Major U.S. Airlines Projected to Report Record Revenue for 3rd Quarter

Douglas A. McIntyre
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By the end of this week, AirlineFinancials.com  LLC 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.
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% profit margin –. For the first time since the 1990’s, the industry will have annual profits three years in a row.
Individual airline projections for third quarter 2012-
  • United (NYSE: UAL) –                      $463 million profit from 9.9 billion revenue
  • Delta (NYSE: DAL) –                         $797 million profit from $10 billion revenue
  • American (AAMRQ) –          $110 million profit from $6.4 billion revenue**
  • Southwest (NYSE: LUV) –                $  97 million profit from $4.3 billion revenue**
  • US Airways (NYSE: LCC) –             $157 million profit from $3.6 billion revenue
  • JetBlue (NASDAQ: JBLU) –                   $  53 million profit from $1.3 billion revenue
  • Alaska (NYSE: 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.
Specific to American Airlines and their bankruptcy reorganization: AirlineFinancials.com believes there is a 70% 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.
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AirlineFinancials.com LLC is a globally recognized company that provides airline industry data, analysis and consulting services

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