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Airlines relish rebound after two lean years

PARIS, October 31, 2010 (AFP) - Commercial airlines in the United States, Europe and Asia are at last relishing a rebound in their financial fortunes, announcing profit spurts after two very lean years.
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The civil aviation sector in recent months has enjoyed a pronounced pick-up in both passenger and freight demand, with airlines welcoming the return of high-end travellers with deep pockets.
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US carriers United, Continental, American Airlines and Delta Airlines earlier this month reported solid net earnings, followed this past week by upbeat announcements from airlines in Europe and Asia.
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"Airlines are experiencing a growth in traffic volumes and -- most importantly -- a price context that is extremely favourable," said analyst Pierre Boucheny of Kepler Capital.

In the face of a brutal plunge in demand during the finance crisis, airlines undertook drastic capacity cuts and cost reduction initiatives.

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Now, as demand firms, carriers have some margin to raise prices.

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On Friday British Airways and Iberia of Spain posted healthy profits, mirroring European peers Alitalia and Lufthansa taking advantage of the global economic recovery.

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BA, which is merging with Iberia, said it rebo

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