European vs US airline profitability

[water check]

Can't help but be puzzled by the extreme difference in profiitability betweent the main European airlines and the US carriers. Even with high fuel prices, the Euro airlines seem to be turning in very healthy profit numbers. What exactly are they doing that is so different from their US counterparts? The present situation in the US is destroying the careers and pensions of it's employees, where in Europe most of the airline workers should see even greater security in these matters. Comments?

[Dani]

In Europe just the big three and the two major LCC making profit, all the rest is struggling. Some get governamental help. More are to be closing down.

In the US LCC making profit, while the majors still haven't adapted their structure to the new reality.

So what is you are hinting at?

Dani

[JW411]

Dani:

Sorry old son but you are talking rubbish. My company has been making increasing profits for almost 20 years now. We just don't shout about it!

[mary_hinge]

Not looking good here either:

http://www.thelocal.se/article.php?ID=2028&date=20050905.

The owners of airline Swe Fly are expected to decide on Monday whether to put up new capital in order to save the company from bankruptcy.

The company, which flies from England to Pakistan via Stockholm Skavsta, suspended flights over the weekend, leaving 400 passengers stranded in Lahore.

One of the passengers who managed to find another way home was Kicki Nordström from Lidingö. She flew from Skavsta to Lahore last Monday and had her home flight confirmed on Thursday. But on Saturday, she and the other passengers were told at Lahore airport that their flight had been cancelled.

"A horrible experience," Kicki told TT. "Many people were in complete despair."

At Swe Fly's office at the airport there was a note on the door with two telephone numbers - neither was answered. Nor was there a reply from Swe Fly's offices in Stockholm or Lahore.

Instead of a direct flight home, Kicki Nordström was forced to take an 18 hour diversion with another airline.

Swe Fly cancelled Friday's and Saturday's flights from Skavsta. The reason, according to managing director Peter Nyblom, was a lack of cash.

"The owners are in negotiations but these are taking some time," he told TT.

"There is a risk of bankruptcy if no new capital comes in."

Around 400 passengers are stuck in Pakistan. The majority should be able to get home with connecting flights to the UK and Norway.

"This is a big concern. We can't transport them home and our competitors' planes are more or less full," said Peter Nyblom.

Kicki Nordström criticised Swe Fly for not having contacted its passengers:

"I wonder what happened to all of those who didn't have the option of buying a new ticket. Many of them were families with children who were visiting relatives."

Peter Nyblom took over as managing director for Swe Fly in June, with the task of putting the company on the right track.

"The company has had it tough for a while. Pakistan's state-owned airline PIA has driven down its prices and we've had a hard time responding to that. Our problem is that Pakistan is our only destination," he explained.

The Swedish Aviation Authority said on Sunday that it was unaware of Swe Fly's financial difficulties.

[Faire d'income]

In Europe just the big three and the two major LCC making profit, all the rest is struggling. Some get governamental help. More are to be closing down.

Which Europe would that be Dani?

[Ignition Override]

Does not Jet A fuel cost more in Europe, or do the airlines receive huge tax breaks, or fuel subsidies?