U.S. AIRLINES NET $3.8 BILLION IN PROFIT IN FIRST SIX MONTHS
In the financial year of 2014, a major US Airlines has recorded a $3.8 billion net profit in the first six months. The report was sanctioned by the Airlines for America (A4A). There has been a 6% profit in the operating incomes from the annual time gaps.
In the financial meeting of 2014 that took place on 21st August’14, the A4A stated that the total net profit earned by 9 publically operating airlines was converted to a total profit of 5% or 5 cents for revenue on each dollar. Net margin earned by aircrafts in the first six months of 2013 was calculated to be a 2.1%.
Profits through these carriers were influenced by the drop in fuel prices by 2.4% that counts for 1/3rd the price for operating an airplane. It has been a modest approach in maintaining costs as well as amounts spent on renting these carriers. This also resulted in increasing the operating expenses by 2.2%. Such expenses included increasing wages, landing fees on terminals, rent costs of terminals and plane’s ownership costs.
John Heimlich, the chief economist at A4A, is publically stating that the fares used in passenger planes are not matching up with the frequency of operating airplanes. Leading airlines are trying their level best to fill as many seats as possible in order to face any losses. Now, the airlines will try completing 80% of their flight tickets that was 79.8% in the year gap of 2011-2013.
John Heimlich also said that the trade industry has summoned 9 consecutive sections of profit and growth in terms of increased passenger seats departing from the US airports. In 2014, the US aircrafts were predicted to deliver 317 new airplanes in which 60 were regional jets, 235 were narrow-body aircrafts and 22 wide-body aircrafts.