Airlines report lofty profit margins

From the LA Times:
The nation's airlines continue to show signs of a strong recovery and healthy profits after one of the worst slumps since the terrorist attacks of 2001.... Jan Brueckner, an economics professor at UC Irvine, attributes most of the industry's improving margins to the airlines' decision to pack more passengers on each plane as demand increased. During the first nine months of 2010, the airlines were filling planes to about 82 percent of capacity, compared with a rate of 75 persent five years ago, according to transportation statistics. "The airlines have been disciplined" in limiting the addition of more planes, Brueckner said. "They have not increased capacity in response to the improvements to the economy."

For the full story, please visit http://www.latimes.com/business/la-fi-1221-airline-profits-20101222,0,40....