Big Airlines Back in Black

Aug. 07--Major international airlines turned their balance sheets around in the second quarter by posting solid net profits that were in sharp contrast to the red ink of last year.

Seventeen carriers sampled by the International Air Transport Association (IATA) showed an aggregate post-tax profit of US$2.17 billion versus a loss of $240 million a year earlier.

The quarterly result indicates a solid performance by the airline industry across all regions, most significantly in North America, IATA said in its latest financial monitoring report.

In North America, where airlines are reaping the benefits of restructuring, net profits for 10 airlines increased more than threefold to $2.14 billion.

The three surveyed European airlines also made a dramatic improvement, narrowing their losses to $79 million from $1 billion.

The two Asia-Pacific airlines in the study posted $71 million in net profit, up from $51 million.

A Latin American carrier improved its net profit to $26 million, up from $11 million.

IATA, which represents 240 airlines comprising 84% of global air traffic, did not name airlines involved in its financial monitoring.Passenger capacity continues to expand through new aircraft deliveries and declines in storage activity, but passenger load factors reached a new record high in June, above 80%.

Copyright 2013 - Bangkok Post, Thailand