Back in the Black

his article describes the second quarter 2006 recovery of the United States passenger airline market since the five-year long losses precipitated by the events of September 11, 2001. Only two carriers cited losses that quarter among the top ten U.S. carriers, both of which cite issues with their impending bankruptcies. Airline executives, however, warn that gains may be limited in the future due to rising fuel costs, which have begun to substantially cut into profits. A brief review is given to each of the ten airlines, and profits are cited. One strategy that was used across all the airlines was that of tightly restricting non-fuel costs. Other factors that improved profitability included fare increases and debt alleviation due to bankruptcies.