We’ve recently seen aircraft manufacturers preparing for a recession lasting until sometime in 2010. President Obama has sounded very upbeat by comparison, predicting that we will see a turnaround by the end of this year. But now, some economic analysts say we may see an upturn in airline travel by this summer.
All together, the US airlines are expecting to lose a combined $2 billion for the three months ending March 31. Only Southwest Airlines is expected to make a relatively small profit, thanks to a very strong January. But even starting with that handicap, analysts expect the industry to turn a net profit for the full year.
In a recent report to investors, Robert McAdoo of Avondale Partners commented, “…the level of pessimism in the marketplace seems to be fading. Indications are that things may have bottomed out as airlines head into peak travel season.”
All told, the consensus among analysts surveyed by the Dallas Morning News is that March will go down as the low point, and industry profits will total a billion dollars in the second quarter and more than $2 billion for full-year 2009.