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Monday, July 23, 2007

Regional Fiscal Contributions Down

The second quarter earnings statements from three network carriers reflect the truism that regional do better in bad economic times. While Delta (DAL) reported increased contributions from its Connection partners, revenue contributed by American Eagle/Connection and Continental Express/Connection carriers were down from the year-ago period at Delta, Continental and American, which reported their earnings last week. Continental’s regional fleet dropped over the last year, reducing available seat miles, which was duplicated at American Eagle/Connection carriers. Delta Connections made a $340 million more than they cost Delta, while Continental carriers made $133 million more than they cost. At least Delta and American regional partners contributed profits. American’s regional carriers lost $52 million during the quarters as costs rose by $22 million