source: thetravel.com
Southwest and American, the two Texas-based major airlines, reported 2nd quarter earnings. The picture is somewhat mixed, despite the industry’s resilience during the Iran War and the rise in fuel prices over the last few months.
Both carriers reported record operating revenues, $16.7 billion for American and $8.4 billion for Southwest. But things diverged from there. Southwest, which is roughly 1/2 of American’s size, reported pre-tax income three times higher than its larger competitor. While the second quarter was slightly profitable for American, it is typically the second most profitable, with the spring shoulder and peak summer travel season beginning. American’s operating margin was 2.7% during the quarter, with Southwest clocking in at 3.4%. But both pale in comparison to the 9.4% from Delta and 6.2% from United, which reported their results last week and are projecting double-digit growth.
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