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Top 5 US Airlines Record Over $5 Billion in Profits in Three Months

Oct. 28, 2017
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3 min read
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Top 5 US Airlines Record Over $5 Billion in Profits in Three Months
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It's earnings season for the US airlines, and this week each of the top 5 US airlines shared their profits for the July-September Q3 financial period. And there's a lot to share.

Despite hurricanes, typhoons, earthquakes and low-cost carrier competition, the US airlines are still raking in cash. The top 5 airlines combined for over $5 billion in pre-tax profits across the three month period and have earned almost $13 billion in profits so far this year:

AirlineQ3 Profit2017 YTD Profit
Delta
$1,805
$4,611
American
$1,004
$2,659
United
$980
$2,399
Southwest
$791
$2,513
Alaska
$427
$661
TOTAL
$5,007
$12,843

Un-audited pre-tax GAAP profits in the millions of US dollars.

This spectacular levels of profits have become the new normal for the airlines, with American Airlines CEO Doug Parker saying in September that he believes AA will never lose money again. This is a spectacular claim when you look at the profitability (or lack thereof) history of the airline, which only netted to $1 billion in pretax profits from 1978-2013 combined:

However, despite historically good profitability, airline executives continue to complain about competition from overseas low-cost carriers and Middle East carriers. In the airline's earnings call Thursday morning, Doug Parker again ranted about subsidies that the Middle East carriers receive. His claim is that the continued profitability of the airline depends on the Trump administration doing something to fix it.

Delta employees recently claimed that they "could all be out of jobs in a few years" if the Open Skies treaty wasn't renegotiated. These complaints continue even as ME3 airlines continue to reduce service to the US and the US carriers' lack of direct competition with the ME3 on any routes.

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The positive of all of these profits: Airlines have been investing in their premium products. AA has finally killed off angle-flat seats on transcontinental flights and has started retrofitting aircraft with premium economy. Delta just introduced its first aircraft with the excellent Delta One Suite product. United continues its slow rollout of Polaris seating, with just 14 Boeing 777-300ERs with the product and one of 69 retrofits done:

Similarly, US airlines are upping their ground game. American Airlines is in the midst of rolling out much-improved Flagship Lounges and United's delay-ridden Polaris lounges should start opening in 2018.

Hopefully steady competition between these airlines will prompt further investment for improvements, rather than airlines just hoarding their profits.

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  • Intro Offer

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  • Annual Fee

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  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.