Big profits at airlines in US, American goes low-cost

American, Southwest, United and Delta post record profits
Boosted by lower fuel prices, American Airlines is the latest carrier in the US to post huge profits for the third quarter, with earnings up 80% to USD$1.7 billion.
Other airlines posting excellent results in recent days include Southwest (77% up), United (58% up) and Delta (45% up), although Delta complains that the strength of the dollar is hurting its profits.
American Airlines also says it will roll out bare-bones fares in 2016, cutting them to match competitors’ prices on any direct route.
The move is designed to better compete with low-cost rivals such as Spirit Airlines and Southwest. American explained that most of its regular customers would switch to a competitor if American charged more per ticket.
Reuters

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