Most US airlines to post Q4 losses

16 January 2008

Amidst fears of a looming recession and mounting fuel prices, US airlines are expected to report a collective loss for the fourth quarter. The results start with American Airlines' parent AMR Corp first off the line on Wednesday.

Overall, industry analysts assert, the industry will record 2007 as its second consecutive year of profitability, as a result of painful cost-cutting and restructuring over the previous years that have made their operations more efficient.

Of the 10 largest US airlines, eight, including American's AMR parent, are expected to report net losses for the fourth quarter, according to analysts surveyed by Thomson Financial.

Of those eight, AMR, US Airways Group Inc and JetBlue Airways Corp are expected to go into loss for the quarter, after having reported profits in the previous year for the same period. United's and Alaska Air Group Inc are expected to widen their losses of a year earlier.

Meanwhile, Delta Air Lines Inc and Northwest Airlines Corp, carriers emerging from bankruptcy-court protection, are expected to narrow their year-earlier losses, along with AirTran Holdings Inc.

Only Continental Airlines Inc and Southwest are expected to stay out of losses in the quarter.