US airlines mostly post encouraging 1Q2014 results; but it's a long and winding road to stability

Nine US airlines turned a combined USD401 million profit in 1Q2014 despite challenging winter storms that wreaked havoc on their operations and created pressure on revenues. The results are all the more encouraging since those carriers managed to reverse a USD552 million loss in the year prior.

The commendable performance by US carriers in 1Q2014 continues positive financial trends among most of the country's airlines, which continually push a message of shareholder returns and declare aspirations to reach investment-grade status.

But the reality is US airlines still face an uphill climb in reaching a level of stability that instills long term investor confidence. Margins remain thin and high debt levels hover over the industry even as carriers work diligently to both reduce debt and obtain more favourable interest rates on their respective debt obligations.