US airlines flying high on better earnings

US airlines are flying high again, reporting surging profits and returning cash to shareholders as they reap the benefits of an industry-wide merger wave wrought by the financial crisis. The biggest US airline by revenue, American Airlines, Thursday notched its highest quarterly profit in history following its acquisition of smaller rival US Airways. Earnings at American for the second quarter jumped 70 per cent to $864 million. Also Thursday, United Airlines reported that second-quarter profit surged 68 per cent to $789 million. Both companies announced $1 billion share repurchase plans and American, after emerging from bankruptcy just six months ago, said it would pay its first quarterly dividend since 1980: 10 cents per share. ‘The fact that we are able to implement this (capital deployment) program while still funding our significant product improvements, fleet renewal program and integration costs is further evidence of the success of our merger,’ said American Airlines chief executive Doug Parker, according to AFP.