Airlines Just Miss Record for Revenue and Ten Year High for Profits

by: Robert Herbst

For the 2nd quarter 2010, the nine largest airlines collectively reported $1.86 billion in net profits on $31.7 billion in revenues (net profits exclude $713 million for special items).

The Q2 revenue was the 2nd highest in history and just shy of 2008’s Q2 $33.3 billion record. The Q2 profits missed the decade high set in 2007 by only $8 million. Q2 revenue and profits were slightly higher than projected earlier in the month.

American (AMR) as projected was the only major airline to report a loss for the recent Q2.

Based on net income margin performance ex-special items, Alaska (NYSE:ALK) led the industry at 8.6%. The rest of the airlines were:

US Airways (LCC) 8.36%

United (UAUA) 8.33%

Continental (NYSE:CAL) 6.93%

Southwest (NYSE:LUV) 6.82%

Delta (NYSE:DAL) 6.72%

Air Tran (AAI) 5.53%

JetBlue (NASDAQ:JBLU) 3.19%

American (AMR) -.19%

Average Q2 margin for the industry was 5.87%.

(Click chart to enlarge.) expects continued strong performance for the airline industry through at least the current 3rd quarter.

Disclosure: No positions