NYTimes.com Article: The Big Airline Profit Margins? Look at Regionals

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The Big Airline Profit Margins? Look at Regionals

September 26, 2004
 By HUBERT B. HERRING





If you want to travel a popular 2,000-mile route -
especially if it's served by one of those low-cost airlines
that are such thorns in the wings of old-line carriers -
the competition is so fierce that the airlines will
practically pay you to hop aboard.

But if you want to make the 200-mile hop from East Podunk
to West Podunk, assuming that there is still such a flight,
the sky-high fare would lead a traveler to expect a
personal jet with crystal Champagne flutes.

So it's little wonder that while the likes of a chipper
Southwest slug it out with the likes of a bloodied US
Airways, small regional carriers - including American
Eagle, SkyWest, Express Jet and Air Wisconsin - are topping
the profit charts.

In the second quarter, the regionals posted a 9 percent
domestic profit margin, the Bureau of Transportation
Statistics reported, compared with 7.2 percent for the
low-cost airlines. The old guard, meanwhile, had a loss of
2.8 percent.

There's nothing like being the only game in town.


http://www.nytimes.com/2004/09/26/business/yourmoney/26count.html?ex=1097213743&ei=1&en=d450e95d96baf224


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