(MENAFN) According to forecasts by the Bank of America, North American airline earnings will surge by 73 percent next year, hitting USD19 billion, boosted by lower jet fuel costs, The Peninsula Qatar reported.
Earnings that match the forecasts would extend a turnaround among US carriers that racked up USD58 billion in losses from 2001 to 2009 before returning to profit in 2010.
Jet fuel for immediate delivery in New York harbor has tumbled 30 percent this year as low as to USD2.21 a gallon, its lowest intraday price since October 2010, according to data compiled by Bloomberg.
"We continue to believe that the recent decline in jet fuel prices represents significant upside to airline EPS, if sustainable," a Morgan Stanley analyst said in a published forecast.
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