Airlines Feel Pinch Of Falling Business Traffic

JOSHUA FREED

MINNEAPOLIS (AP) — First-quarter airline results are in and it's nearly all red ink with JetBlue and AirTran the notable exceptions.

The results suggested that airlines with a lot of business and international traffic struggled the most.

JetBlue reported a $12 million profit on Thursday, well ahead of analyst expectations, as its fuel bill fell by 31 percent from a year ago. On Wednesday AirTran Holdings Inc. said it made $28.7 million for the quarter despite a revenue drop.

The results stood out against the $103 million loss posted Wednesday by US Airways Group Inc., as well as big losses over the last several days from American Airlines, Delta Air Lines, and United Airlines. Also Thursday, Alaska Air Group Inc., parent of Alaska Airlines and Horizon Air, posted a $19.2 million loss.

"It's certainly a good time to not be dependent on business-class traffic to and from Heathrow," said Avondale Partners senior research analyst Bob McAdoo.

US Airways Group Inc. executives said, they, too, have been benefiting from a mix of passengers who skew more toward leisure travel. The company said that, not counting fuel hedges, it would have made $8 million for the quarter.