U.S. security handouts boost airline results

U.S. security handouts boost airline results

Delta, Continental and Northwest Airlines posted second-quarter profits thanks to millions in federal security reimbursements.

Excluding government assistance, Delta said it lost $237 million in its second quarter as revenue fell to $3.31 billion from $3.47 billion in the same period last year.

Northwest's $227 million profit would have been a $160 million loss minus the security handout and other special items.

Continental posted second-quarter profit of $79 million on revenue of $2.03 billion.

But the carriers warned that the industry outlook was still weak, adding that high fuel costs, the war in Iraq and the impact of the SARS virus hurt second-quarter results.