Second quarter profits soar at American, Continental

Second quarter profits soar at American, Continental    Indicating a recovery in the aviation industry for United States-based airlines, American Airlines and Continental Airlines both reported substantial rises to their second quarter net incomes.
   AMR Corp., parent company of American Airlines, Wednesday reported a net profit of $291 million for the second quarter, up 402 percent compared to a net profit of $58 million in the second quarter 2005.
   American’s operating income jumped 108 percent to $476 million, from $229 million a year ago. Operating revenue was $5.98 billion, up 12.5 percent over the $5.31 billion posted in the second quarter last year.
   AMR’s cargo revenue was up 4.6 percent to $206 million. Cargo ton-miles, a measure that reflects volume and distance traveled, improved 0.7 percent to 562 million, from 558 million.
   “We are pleased to have earned a quarterly profit — just our second in the last 22 quarters without the benefit of special items,” said Gerard Arpey, AMR chairman and chief executive officer. “Our performance indicates very clearly that we are on the right track, but also demonstrates — just as clearly — that we have more work to do to return our company to financial health.”
   For the year to date, AMR reported a net income of $199 million, up 91.3 percent from $104 million in the first six months of 2005. Operating income increased 135 percent to $252 million, compared to an operating income of $252 million in the same period last year. Total operating revenues improved 12.5 percent to $11.32 billion from $10.06 billion. Cargo revenue increased 3.2 percent to $392 million.
   Houston-based Continental Airlines said today that it nearly doubled its second-quarter net income with a $198 million profit, compared to a net income of $100 million in the same period last year.
   Continental’s quarterly operating income went up 105 percent to $244 million from $119 million in the second quarter 2005. Total revenue increased 28 percent to $3.51 billion from $2.86 billion, with revenue from cargo, mail and other operations in the second quarter up 15.5 percent to $112 million. Cargo ton-miles flown improved 11 percent to 263 million.
   “After five years of challenges and hard work, it’s great to see a pay-off for everyone’s efforts,” said Jeff Misner, Continental’s executive vice president and chief financial officer. “But, even with all the progress made, we must continue our focus on eliminating unnecessary costs.”
   After six months, Continental posted a net income of $132 million, compared to a deficit of $86 million in the first half 2005. Continental’s operating income was $255 million, from an operating loss of $54 million in the same six-month period last year. Total revenue improved 20.3 percent to $6.45 billion from $5.36 billion. Continental’s revenue from cargo for the year so far is up 11.2 percent to $218 million.