Higher fares, stronger demand help carriers post profits

10/21/2010 | New York Times (tiered subscription model), The

Higher ticket prices and a rebound in travel helped three large airlines post third-quarter profits. Observers note that carriers have also limited their capacity growth and found new sources of revenue by adding fees for luggage. "It's a major turnaround for the industry, and I expect it to continue in the fourth quarter," said Robert Herbst, an independent airline consultant. Delta Air Lines, US Airways and AMR Corp., parent of American Airlines, reported third-quarter profits on Wednesday.

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