American, Continental post second quarter net income profits

American, Continental post second quarter net income profits American Airlines and Continental Airlines both reported Wednesday a return to net income following a series of depressing results that have blighted the aviation industry in recent years.
   Houston-based Continental Airlines reported a second-quarter net income of $100 million, compared to a loss of $28 million in the second quarter of 2004.
   Continental’s aircraft fuel and related taxes jumped 48.6 percent to $575 million in the second quarter.
   Continental’s operating income nearly tripled from $40 million in the second quarter 2004 to $119 million in the last quarter. Total revenues were up 11.9 percent to $2.85 billion from $2.55 billion, with revenue from cargo, mail and other operations in the second quarter up 13.5 percent to $236 million, from $208 million last year. Cargo ton-miles flown, a measure that reflects volume and distance traveled, dropped 4.4 percent to 237 million.
   “Our cost restructuring continues to show solid results,” said Jeff Misner, Continental’s executive vice president and chief financial officer. “But we’re not out of the woods yet, as fuel costs continue to escalate and remain at record levels.”
   For the year-to-date, Continental reported a net loss of $86 million, compared to a deficit of $183 million in the first six months of 2004. Continental’s operating loss in the first half of 2005 was $54 million, compared to an operating loss of $97 million in the same period last year. Revenues improved 10.3 percent in the January-June period to $5.3 billion.
   AMR Corp., parent company of American Airlines, reported its first profitable quarter, without the benefit of special items, since the fourth quarter of 2000, with a second quarter net income of $58 million, compared to a net profit of $6 million for the same period in 2004.
   American’s fuel bill in the latest quarter rose to $1.3 billion from $917 million in the same quarter last year.
   American’s operating income jumped 16.8 percent to $229 million, from $196 million. Operating revenue was $5.3 billion, up 9.9 percent over the $4.8 billion posted in the second quarter last year.
   AMR’s cargo revenue was up 1.3 percent to $157 million. Cargo ton-miles dipped 1.6 percent to 558 million, from 567 million.
   “The high price of fuel remains one of the biggest clouds hanging over our company and our industry,” said Gerard Arpey, AMR chairman and chief executive officer, “and unfortunately, there doesn’t seem to be any relief in sight — oil prices in the second half of the year are currently projected to be higher than during the second quarter.'
   For the year-to-date, AMR reported a net loss of $104 million, compared to a deficit of $160 million in the first six months of 2004. AMR’s operating income increased 5.9 percent to $252 million, compared to an operating income of $238 million in the same period last year. Total operating revenues improved 7.7 percent in January-June to $10 billion.