Chicago, Oct 13: The US airline industry is expected to post its first quarterly operating profit in nearly three years on the heels of an uptick in travel demand during the summer, but analysts say a host of challenges still loom. One analyst expects the largest US carriers to post third-quarter operating profits totalling $300m, compared to a $1.5bn operating loss a year earlier. Cost cutting and capacity reductions, combined with improved demand now that the SARS virus and Iraq war have ended, helped boost results.
The industry is still forecast to post a pre-tax loss of $460m compared with a pre-tax loss of $2.2bn the year before, according to Merrill Lynch analyst Michael Linenberg. Bureau Report