DALLAS – Three U.S. airlines said Thursday that they made money in the April-June quarter, the start of the summer travel season, with help from cheaper jet fuel and extra fees on passengers.
The CEO of US Airways said bookings have picked up and the swoon in business travel may be easing. JetBlue expects to make money the next two quarters, and talked about expansion.
But skies aren't all blue in airline country. Traffic and revenue continued to fall at all three carriers — US Airways, JetBlue and Alaska Airlines.
Airlines are struggling with a decline in travel and volatile fuel prices. Companies have slashed travel budgets due to the recession, grounding many of the airlines' best customers and prompting speculation that some carriers could face a cash crisis this winter.
US Airways, JetBlue and Alaska Airlines were the last of the largest nine U.S. carriers to report second-quarter results. The final tally showed a combined loss of nearly $600 million, as three of the biggest — Delta, American and Continental — lost money. But the other six made a profit.
US Airways Group Inc. Chairman and CEO Doug Parker put a positive spin on the summer, saying leisure bookings have picked up since Memorial Day and even business travel seems to be stabilizing.
Revenue from corporate travel accounts plunged between 30 and 35 percent each of the first five months of the year, but the decline slowed to 28 percent in June and 22 percent so far in July, Parker said.
"We're certainly not counting on a quick recovery, but we're seeing some initial signs of recovery, which are encouraging," he said.
Hunter Keay, an analyst with Stifel, Nicolaus & Co., said US Airways provided more evidence that business travel is still weak, "but it's trending in the right direction. We're gradually improving off an extremely depressed base."
US Airways second-quarter revenue fell 18 percent, to $2.66 billion, even with more than $100 million from fees such as checked-bag charges.
The company earned $58 million, or 42 cents per share, thanks to gains made on paper — they were "unrealized" — from fuel-hedging contracts.
Without those one-time benefits, the Tempe, Ariz.-based company would have lost $95 million, or 77 cents per share. Analysts, who usually exclude one-time items from their forecasts, expected a loss of 84 cents per share, according to a survey by Thomson Reuters.
A year ago, the company lost $102 million, or $1.12 per share, excluding items.
Even though fuel prices have been creeping up again, spending on fuel fell 59 percent at US Airways and 39 percent at JetBlue compared with a year ago.
That helped Forest Hills, N.Y.-based JetBlue Airways Corp. earn $20 million, or 7 cents per share, compared with a loss of $9 million, or 4 cents per share, a year ago. That beat the analysts' forecast of 2 cents per share profit. Revenue fell 6 percent, to $807 million.
JetBlue charges up to $40 extra for a seat with more legroom. Those and other fees raised an average of $17.50 per passenger for the airline, up from $16 a year ago.
JetBlue gave a bright earnings outlook for the rest of the year, saying it expects to be profitable the last two quarters and would consider expansion.
CEO Dave Barger said JetBlue wants to pay down debt and position itself to buy new gates or takeoff and landing slots at key airports such as Washington Reagan International.
Alaska Air Group Inc., which runs Alaska Airlines and Horizon Air, reported profit of $29.1 million, down 53.9 percent, as revenue fell by 9.3 percent. Excluding one-time items, the Seattle company earned 72 cents per share, beating the analysts' forecast of 53 cents per share.
Shares of US Airways rose 25 cents, or 12.2 percent, to close at $2.30 Thursday; JetBlue gained 14 cents, or 2.9 percent, at $4.92, and Alaska Air added $1.28, or 6.2 percent, at $22.02.
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