Major US airlines yesterday reported heavy third quarter losses, under pressure from record fuel prices and fierce competition with budget carriers.
Four of the traditional carriers - American Airlines, Northwest, Delta and Continental - were in the red, even after unprecedented cost-cutting to avoid bankruptcy. Two others - United Airlines and US Airways - remain in bankruptcy with their chances of escape in doubt.
AMC, parent of world number one American Airlines, suffered a loss of $214m in the three months to September 30, after squeezing out a net profit of $1m a year earlier. Total sales rose 3.4% to $4.76 billion.
Chairman and chief executive Gerard Arpey blamed record fuel prices, the airline's inability to pass fuel costs on to customers, and a series of hurricanes which depressed revenue, increased costs and disrupted an important part of its network.
The story was similar at other carriers. Northwest reported a net loss of $46m, reversing a year-earlier net profit of $42m. Revenue, however, surged 13.4%.
Continental posted a loss of $16m, swinging away from a profit of $133m a year before, even though sales climbed 8.4% to $2.56 billion.
Delta, which is fighting to avoid bankruptcy, said losses nearly quadrupled in the three months to September 30 to $646m, as sales rose 5.9% to $3.87 billion. After the results, analysts predicted that Delta would have to decide within weeks whether to seek bankruptcy protection.
