Flying to Profits

The great success story of the American economy in the past 12 months has been written by the airlines. From a perilous financial position in the mid-Seventies, the airlines have suddenly turned it all around, emerging as national leaders in terms of industry profitability.

In its summary of corporate profits through the second quarter of this year, Business Week informs us that, “thanks to a surge in air travel, the nation’s airlines chalked up a 91 per cent increase in earnings for the quarter. Profits rose 223 per cent at [United Airlines], 193 per cent at Pan American World Airways, and 71 per cent at Trans World Airlines. And Eastern Airlines, which recorded a deficit a year ago, reported earnings of $24 million.” On a six-month basis, the figures for the industry as a whole are even more impressive— a whopping rise of 174 per cent.

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M. Stanton Evans

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The great success story of the American economy in the past 12 months has been written by the airlines. From a perilous financial position in the mid-Seventies, the airlines have suddenly turned it all around, emerging as national leaders in terms of industry profitability.

In its summary of corporate profits through the second quarter of this year, Business Week informs us that, “thanks to a surge in air travel, the nation’s airlines chalked up a 91 per cent increase in earnings for the quarter. Profits rose 223 per cent at [United Airlines], 193 per cent at Pan American World Airways, and 71 per cent at Trans World Airlines. And Eastern Airlines, which recorded a deficit a year ago, reported earnings of $24 million.” On a six-month basis, the figures for the industry as a whole are even more impressive— a whopping rise of 174 per cent.