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U.S. airlines report healthy 3Q profits, no noticeable Ebola impact

U.S. airline stocks rallied Thursday after several carriers reported healthy third-quarter profits, helped by strong bookings and declining jet-fuel prices.

U.S. airline stocks rallied Thursday after several carriers reported healthy third-quarter profits, helped by strong bookings and declining jet-fuel prices.

Ebola fears have not noticeably discouraged travel, airline executives said.

"The demand environment remains solid, and strong revenue trends have continued," Southwest Airlines chief financial officer Tammy Romo said on an investor call.

American Airlines, Southwest, and JetBlue Airways posted record profits for the three months ended Sept. 30. United Airlines said its profit more than doubled.

"The third quarter was not without some challenges; events like the hurricane in Cabo San Lucas and the disruption to Midwest flying caused by the fire at the Federal Aviation Administration facility near Chicago added complexity," American chief executive officer Doug Parker said in a message to employees.

Jet fuel, which accounts for about one-third of airlines' operating costs, has fallen to levels not seen since 2010, analysts said.

American, which merged in December with US Airways, Philadelphia's largest carrier, expects to post a record profit in the current quarter and for the full year, Parker said.

The airline said it earned a record $942 million in the latest quarter, compared with combined earnings from American and US Airways of $289 million a year ago. Revenue rose to $11.2 billion. Excluding special items and charges, American said, it earned $1.2 billion.

Southwest earned $329 million, compared with $259 million a year earlier. Excluding special items, Southwest said, it earned $382 million. Revenue rose to $4.8 billion.

Southwest CEO Gary Kelly said that the revenue momentum has continued into October, and that "current bookings for November and December are also good."

After a congressional hearing last week about the handling of Ebola cases in the United States, American took a "measurable" hit in bookings "for one day," airline president Scott Kirby told investors. "And then the bookings snapped back to normal. So, really, no impact," he said.

United Airlines earned $924 million, compared with $379 million in the same quarter last year. Revenue rose to $10.6 billion. United closed up 36 cents to $49.42.

Alaska Airlines said its net income was $198 million, compared with $289 million in third-quarter 2013. Revenues were $1.5 billion. Alaska shares closed up 6.8 percent to $49.95.

JetBlue Airways said its net income was $79 million, up from $71 million a year earlier. Revenues were $1.53 billion. JetBlue shares closed 2.8 percent higher to $10.86.

American shares were up 3.89 percent to $38.48. Southwest closed down 2.78 percent to $33.25.