Boom times for big US airlines: $3.9b in 2Q profits
Compared with their checkered track record, major airlines are enjoying boom times. Planes are full and fuel is much cheaper than it was last year. The four biggest US carriers just reported a collective Q2 profit of US$3.9b. And yet investors seem to be looking past the bottom line. They have become obsessed with fare prices — falling now for more than a year — that may foreshadow thinner profits in the future. The airlines will face more pressure for measured growth (nobody is talking about shrinking yet) if revenue trends don't improve this year. Right now even business travelers are enjoying a relative bargain. All airlines said pricing was weak for tickets bought on short notice — often by corporate travelers. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-07-25/general/boom-times-for-big-us-airlines-3-9b-in-2q-profits
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Boom times for big US airlines: $3.9b in 2Q profits
Compared with their checkered track record, major airlines are enjoying boom times. Planes are full and fuel is much cheaper than it was last year. The four biggest US carriers just reported a collective Q2 profit of US$3.9b. And yet investors seem to be looking past the bottom line. They have become obsessed with fare prices — falling now for more than a year — that may foreshadow thinner profits in the future. The airlines will face more pressure for measured growth (nobody is talking about shrinking yet) if revenue trends don't improve this year. Right now even business travelers are enjoying a relative bargain. All airlines said pricing was weak for tickets bought on short notice — often by corporate travelers. <br/>
