Lower Fuel Costs Lift Airline Profits in the Third Quarter
The market has not been good for all industries this year. The drop in oil prices proved to be a winning point for the airlines and drivers but has hurt the companies exploring and producing oil.
International Air Transport Association (IATA) says the airline industry is all poised to post $33 billion as net profits collectively this year mainly due to record saving on low fuel cost and higher flight demand by the passengers.
In The third quarter the profits of U. S. airline industry reached new heights with $8.8 billion operating profits in total in the industry shows a report from the Department of Transportation.
Compared to 2014, it has increased sixty one percent for the quarter that includes the crucial summer travel season.
During the first nine months of the ongoing year, the operating profits for the airlines have been $22 billion shows the government statistics. It's a seventy five percent increase compared to last year same period. There are still counting left for three more months and the very first three quarters of the year have proved to be the most profitable year for the industry.
The jet fuel cost dropped thirty eight percent this year saving the industry $4.3 billion in the latest quarter alone. It also helped in balancing a rise in the labor cost.
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