American, Southwest post Q3 profits with help from taxpayers

American and Southwest Airlines are reporting that they made profits in the third quarter, thanks to large amounts of government pandemic relief

DALLAS -- American Airlines and Southwest Airlines posted third-quarter profits thanks to federal pandemic aid – smaller Alaska Airlines turned the trick even without money from taxpayers – and they expect planes to be packed over the holidays.

Still, the carriers reported Thursday that higher expenses for jet fuel and labor are casting uncertainty over the rest of the year. Southwest expects to lose money in the fourth quarter.

Airlines are still waiting for a significant rebound in business travel, a highly lucrative part of their business. They say business travelers will come back once companies fully re-open their offices, but that sentiment sounds more like hope than certainty.

And the airlines are struggling to comply with a White House order to get their workforces vaccinated. Each of the leading U.S. airlines is taking a different approach: United has a hard vaccine mandate. Delta is using a surcharge to push workers to get the shots. American and Southwest are searching for a way to satisfy the Biden administration without offending anti-vaccine employees.