AFP, New York :
Major US airlines are facing a boon thanks to lower fuel prices and enjoying record profits, but doubts remain as to whether the industry can reach long-term profitable levels.
American Airlines, United Airlines, Delta Air Lines and Southwest Airlines-the four top US carriers-have seen their profits spike by some 30 percent in the second quarter.
American Airlines and United even recorded their largest quarterly profits ever, $1.7 billion and $1.2 billion, respectively.
But behind the surge in earnings is an array of challenges that analysts say may be difficult to balance: a strong dollar, excess capacity on international routes and a war of budget pricing causing a downward trend on the market indicator of revenue per passenger per mile.
“Low oil prices translate into higher profits for big airlines,” said analyst William Bias from 247WallSt.com.
Crude prices have fallen by more than 50 percent compared to a year ago.
Delta, for example, was able to drop its fuel bill by 40 percent.
Major US airlines are facing a boon thanks to lower fuel prices and enjoying record profits, but doubts remain as to whether the industry can reach long-term profitable levels.
American Airlines, United Airlines, Delta Air Lines and Southwest Airlines-the four top US carriers-have seen their profits spike by some 30 percent in the second quarter.
American Airlines and United even recorded their largest quarterly profits ever, $1.7 billion and $1.2 billion, respectively.
But behind the surge in earnings is an array of challenges that analysts say may be difficult to balance: a strong dollar, excess capacity on international routes and a war of budget pricing causing a downward trend on the market indicator of revenue per passenger per mile.
“Low oil prices translate into higher profits for big airlines,” said analyst William Bias from 247WallSt.com.
Crude prices have fallen by more than 50 percent compared to a year ago.
Delta, for example, was able to drop its fuel bill by 40 percent.
