The universe of profitable US airlines shrank further during the third quarter ended Sept. 30 as fuel prices climbed throughout the summer while back-to-back-to-back-to-back hurricanes pummeled those carriers with extensive route networks in Florida and the Caribbean. Yields in the hypercompeti-tive domestic market continued to erode, although a rise in load factor offset about half the decline. The low-cost segment was not immune to the challenge as JetBlue's profits plunged 71% while America West and AirTran fell into the red in what historically is the industry's strongest quarter. In late October, ATA Airlines—an LCC although hardly a new entrant—filed for Chapter 11 bankruptcy protection without reporting results for the period. Southwest Airlines, on the other hand, actually improved its performance versus the 2003 third quarter as adept and aggressive fuel hedging mitigated the impact of near-record oil prices.
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