Airlines Should Have Profit Next Year: Analyst

CHARLOTTE, N.C. -- Even though the troubled economy has dimmed the 2009 outlook for most sectors, airlines are poised to equal their most profitable year this decade, according to a veteran airline industry analyst.

In a report, FTN Midwest analyst Mike Derchin said he expects carriers to produce net income of $5 billion next year, equaling the 2007 level, assuming oil is at $80 a barrel, revenue per available seat mile grows at 8% to 9%, and domestic capacity is reduced by 8% to 9%.

With similar metrics currently in place, Derchin also expects the industry to report a small profit for the fourth quarter. ...