Lackluster earnings results reported by airlines worldwide demonstrate how difficult the operating environment for the industry was in the first half of 2011. In Europe, Lufthansa Group posted a net loss of EUR206 million (US$297.9 million) for the first six months of 2011, widened from a net deficit of EUR104 million in the prior-year period, while Air France-KLM reported a net loss of EUR197 million for its fiscal first quarter ended June 30, reversed from a EUR736 million profit in the prior-year period.

In Asia, Singapore Airlines revealed a fiscal first-quarter net profit of S$45 million (US$37.4 million), down 82% from a S$253 million in net income in the 2010 June quarter. In Latin America, Santiago de Chile-based LAN Airlines tallied a US$15.9 million second-quarter net profit, down 73.7% from net income of US$60.6 million in the year-ago period.

All of the carriers, four of the industry's most consistent performers, cited high fuel costs and onetime events in explaining the disappointing results. "Results ... were significantly impacted by onetime non-operating effects, as well as operational impacts including higher fuel prices, the presence of volcanic ash on certain routes and the start-up of LAN's operations in Colombia," LAN stated.

SIA noted, "The prevailing price of jet fuel of above US$130 per barrel is close to 50% higher year-on-year. At these levels, fuel cost now constitutes more than 40% of the Group's total expenditure." AF-KLM said, "The operating environment remains uncertain due to the situation in Japan, Africa and the Middle East and the Eurozone crisis. Moreover, fuel prices are still at high levels and the euro remains volatile." LH pointed out that the "catastrophes in Japan and political unrest in North Africa place[d] a burden on development of business during first half of 2011."