Rising demand will reduce carriers’ red ink to $5.6 billion, the International Air Transport Assn. predicts. A U.S. group, citing volatile fuel prices, is not so optimistic.

The airline industry will rebound modestly next year, losing only about half of what it is expects to lose in 2009, a trade group predicted Tuesday.
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American Airlines on Thursday stepped up efforts to save its partnership with Japan Airlines, the troubled carrier that is the lynchpin of its Asian network, by promising a $1.1bn investment to support the group.

The investment – much of which would be provided by US private equity group TPG – exceeds a rival offer from Delta Air Lines, which is trying to lure JAL away from Amercian’s OneWorld alliance.

Last month Delta and its SkyTeam partners offered to inject $500m of new equity into JAL and to extend another $500m in asset-backed financing and compensation for the cost of switching teams.
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American Airlines said preparations for an investment in Japan Airlines Corp. are at an advanced stage after Delta Air Lines Inc. announced a package of incentives to lure the Asian carrier into a new alliance.

Japan Air, as the airline is known, would face a regulatory risk in leaving American’s Oneworld group and joining Delta’s SkyTeam, Theo Panagiotoulias, American’s Pacific director, told reporters today in Tokyo.
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Airline stocks traded higher Monday, gaining as major U.S. carriers released their September traffic statistics.

At last check, the NYSE Arca Airline Index (XAL) added 1.2% to 27.25 points as all but one of its 13 components moved into the green. In the last 52 weeks, the benchmark index has moved in a range of 30.95 to 12.62 points.
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Cypriot national carrier Cyprus Airways posted a net loss of EUR3.48 million euros (USD$5 million) in the first half of the year, with higher losses avoided by gains on the sale of older aircraft.

Revenue fell 17 percent to EUR116.3 million on a 53,000 drop in passenger numbers compared with 2008.
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Frontier Airlines Holdings, Inc. today reported a net profit of $17.8 million for the month of July and its ninth consecutive monthly operating profit. The results were filed in the Company’s unaudited Monthly Operating Report for July 2009.
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Shares of major U.S. air carriers were slipping Thursday with the wider market on new recessionary concerns, but at least one analyst said that some airlines have fared surprisingly well despite fewer passengers. (continue reading…)