EARNINGS : Top Airlines Expected to Post Solid Second-Quarter Results
NEW YORK — The nation’s leading airlines appear to have left the weak further behind in the second quarter, reaping solid profits from higher fares and a windfall from the Eastern Airlines strike, industry analysts said.
“The airlines that are making money are going to make a lot of money (in the quarter),†said Edward Starkman of Paine Webber Inc. “Excluding Pan Am Corp. and Eastern, everybody is doing very well.â€
The airlines begin reporting second-quarter results this week.
Analysts said some of the industry’s strongest companies--such as AMR Corp., Delta Air Lines Inc. and USAir Group Inc.--have struck a gold mine from the Eastern Airlines strike, which has diverted passengers to their planes.
“Those three have benefited the most, but Pan Am has also gained in its north-south flights and from the shuttle,†said Louis Marckesano of Janney Montgomery Scott Inc.
For example, Atlanta-based Delta is expected to report earnings of $3.50 to $4.20 a share in the quarter ended June 30, up sharply from $2.11 a share in the year-ago period.
Analysts said AMR, parent of American Airlines, should earn $2.55 to $2.75 a share in the quarter versus $2.36 last year.
They said firms like NWA Inc.’s Northwest Airlines and UAL Corp.’s United Airlines, which have not gained as much from Eastern’s troubles, also should report strong second-quarter results.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
