Cruising altitude

21 Oct 2010 By Christopher Swann

Southwest s bumper profit caps a heady week for the industry. The glum economic backdrop makes the rebound even more impressive. Rising fuel prices remain a threat. But U.S. carriers can keep momentum by resisting the selfdestructive surge in plane orders happening in Europe.

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Southwest Airlines, the second largest U.S. carrier by market capitalization, announced a rise in net income to $205 million in the third quarter against a loss of $16 million a year earlier.

Other U.S. airlines reported sharp increases in profit this week. Delta Air Lines said on Oct. 20 that net income had climbed to $363 million in the quarter, against a loss of $161 million a year before. The news sent the company's shares rising 11 percent.

AMR, the parent of American Airlines, posted its first quarterly profit since 2007.

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