Tell me the airlines are making money
 

I fly Continental every week for work. Every flight I'm on is completely full, if not oversold. I know the airlines have scaled back frequency due to the fuel price increase, but I ask myself every time...they must be profitable?

Are they?

On the verge, but full planes are obviously no indicator of profitability.

Second Quarter Earnings Announcement Expected: ALK has confirmed that earnings will be announced 07/22/2010. With 13 analysts covering ALK, the consensus EPS estimate is $2.08, and the high and low estimates are $2.35 and $1.90, respectively.

Second Quarter Earnings Announcement Expected: LFL Earnings will tentatively be announced 07/27/2010. With 4 analysts covering LFL, the consensus EPS estimate is $0.16, and the high and low estimates are $0.27 and $0.10, respectively.

& the debt loads that many airlines have, plus dealing with unions & price of fuel, ugh.

IIRC, SQ has posted profits every year since the SARS scare. Though their accounting rules and degree of state involvement may be fairly different than those which apply to US-based carriers.

As for fuel prices, they have been relatively stable for the past year (between $60 and $80 / bbl). IMHO, if the legacy US carriers cannot turn a profit in Q2 / Q3 2010, there are serious questions as to whether they can consistently turn a profit in ANY economic situation.

There is more to fuel price than bbl costs. JET-A was up 34% in May 2010 v May 2009, according to the folks at BTS.gov. http://twitter.com/TransportStats/status/18443368419

That's a big increase.

Go to any finance web site and look up airlines.

Some stock symbols of well known US-based airline companies:

AAI AirTran
ALK Alaska Airlines
AMR American Airlines
CAL Continental Airlines
DAL Delta Airlines
JBLU Jet Blue Airways
LUV Southwest Airlines
LCC US Airways
UAUA United Airlines