Air Transport World

Love those profits. (US airline industry earnings)

The recovery among U.S. airlines that began last year gained momentum in this year's first quarter, with most U.S. majors reporting improved operating and financial results in what traditionally is a difficult period for the industry.

The reorganizations and re-structurings under way are paying off, and this as well as strong traffic and stable capacity contributed to the successful performance for the three months through March 31.

According to the American Express AirFare Index, the average domestic fare rose throughout the first quarter, while comparisons on a year-to-year basis reveal a similar trend. The specter of rising fuel prices provides the only shadow in an otherwise very bright picture (see tables).

         FARES ARE UP* ...

         Jan.   Feb.   March   Apr.

1995     $221   $234   $242    $242E

1994     $257   $258   $242    $238

% chg.   (14)    (9)    (0)       2E

* Average U.S. domestic fare.
E: Estimate

           BUT FUEL PRICES
            ARE A CONCERN

          1Q       2Q       3Q      4Q

1995    54.8    57.0F    62.0F   62.0F

1994    56.0    53.9     56.0    57.4

F: Forecast.
Kerojet prices, U.S. airlines.
* American Express Airfare Index;
NatWest Securities.
[dagger] NatWest Securities.

                   TURNING THE CORNER

(C$ millions)                   1994      1993       1992
Revenues                       4,024     3,598      3,501
Op. … 

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