US airlines surge but plenty of challenges still lie ahead

New York

MAJOR US airlines are facing a boon thanks to lower fuel prices and enjoying record profits, but doubts remain as to whether the industry can reach long-term profitable levels.

American Airlines, United Airlines, Delta Air Lines and Southwest Airlines - the four top US carriers - have seen their profits spike by some 30 per cent in the second quarter.

American Airlines and United even recorded their largest quarterly profits ever, US$1.7 billion and US$1.2 billion, respectively.

But behind the surge in earnings is an array of challenges that analysts say may be difficult to balance: a strong US dollar, excess capacity on international routes and a war of budget pricing causing a downward trend on the market indicator of revenue per passenge…