Airlines: Winners & Losers

I'm indebted to my friend John McCorkle, a US Airways flight attendant who writes a sassy column about the airline business (with plenty of digs at his employer's ineptness at running a profitable carrier).  He compiled the numbers the major airlines reported for the second quarter of this year, and the difference in profitability is eye-opening.  Here, as reported by the airlines, are their operating results for the second quarter of 2005:

THE WINNERS:
AirTran ... $11.4 million net income
JetBlue ... $12.2 million net income
America West ... $13.9 million net income
Alaska ... $17.4 million net income
American ... $58 million net income
Continental ... $100 million net income
Southwest ... $159 million net income

THE LOSERS:   
US Airways ... $62 million net LOSS
Northwest ... $225 million net LOSS
Delta ... $382 million net LOSS
United Airlines ... $1.43 Billion net LOSS

That last number, for United, is shocking.  I mean, that's a loss that's more than $1 billion higher than the next-worst performer, Delta.  And United has been operating under the protection of a bankruptcy court for two years now!  (Latest United prediction of when it might emerge from bankruptcy: Early in 2006.  Neither John nor I are taking bets on that.)

If, like me, you're an airline business junkie, you will find John's e-mail newsletter wildly entertaining.  A subscription is free--just drop him a line at JohnMcCorkle@Bellsouth.net and tell him Rudy sent you.