Fuel costs are on the rise and on-time rates are at record lows -- it's no wonder that earnings are a delicate topic at the major airlines. Here's a quick summary of the
lackluster results from
AMR Corp. (NYSE:
AMR),
Delta Air Lines (NYSE:
DAL), and
Southwest Airlines (NYSE:
LUV):
- AMR, the parent of American Airlines, reported second-quarter net income of $317 million, or $1.08 per share, up 9% from year-ago results. Revenue was down 1.6% to $5.88 billion. Both figures were below analysts' earnings and revenue estimates of $1.19 per share and $5.98 billion, respectively. According to MarketWatch, AMR cited "severe weather disruptions," calling the quarter's meteorological phenomenon "an enormous obstacle." Looking forward, AMR expects capacity to drop 2.4% on a year-over-year basis in the third quarter.
- DAL announced quarterly results for the first time since emerging from bankruptcy at the end of April. The airline netted a profit of $1.8 billion, or $4.49 per share. Excluding items, Delta would have banked 70 cents per share, topping Street estimates. Sales rose 5.5% during the period to $5 billion, also topping Thomson Financial's composite target.
- Finally, LUV said its net profit was off 16.5% at $278 million, or 36 cents per share (or 25 cents per share excluding items). Total operating revenue was up 5.5% to $2.58 billion. The "low-cost" carrier expects its fuel cost to rise to $1.70 a gallon in the current third quarter, up from $1.62 in the second. Its costs excluding fuel are also expected in increase above year-ago figures.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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