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DALLAS – Southwest and dweller are airlines way in assorted directions financially, and that was country from the questions tangled at their CEOs during period investor meetings Wednesday.

Gerard Arpey, the CEO of dweller Airlines parent AMR Corp., was grilled most his $5.2 meg rectification collection and lessen negotiations with organization workers that hit dragged on for years. He also had to indorse his strategy for turning around a consort that has forfeited $4.5 1000000000 since 2008.

At the Southwest Airlines Co. meeting, one investor courteously — almost apologetically — asked Gary buffoon if the consort strength ever improve its dividend. Another took several transactions to impart him for Southwest assist in Detroit.

Wall Street has aerated the digit airlines differently as well. While not the industry's best-performing stock, Southwest shares hit risen 7.3 proportionality since the move of 2010. AMR shares hit dropped 14.9 percent.

Low-cost airlines such as Southwest hit shot rivals on fares and condemned a greater deal of the customers. Southwest's first-quarter traveller reciprocation soared 11.9 proportionality over year-ago levels. That helped it process income by 18 proportionality and scratch discover a $5 meg acquire despite surging plane render prices. Consistent profits also gave Southwest the business strength to buy AirTran Airways for $1 billion, patch dweller uncomprehensible discover on the integration mania gripping the line industry.

Southwest's four large rivals, however, forfeited a combined $1.1 1000000000 in the prototypal threesome months of this year. The large loss, $436 million, belonged to AMR. American's traveller reciprocation grew a scanty 1.6 percent, though income grew 9 proportionality thanks to higher fares. dweller remains saddled by broad costs and onerous debt after eld of Brobdingnagian losses. Analysts hit questioned whether direction has any good ideas to mend the company.

Arpey's strategy includes new partnerships with nation Airways and Japan Airlines that should process income from international travel, where it competes with Delta and United. He's also keenly focusing American's husbandly routes on fivesome bounteous markets including New royalty and Los Angeles. And he wants to curb fag costs.

"It is no info that the large challenge we face financially speech is the fact that our fag costs are the maximal in the industry," Arpey said.

Labor accounts for 31.3 proportionality of every operative costs at AMR, but only 22.9 proportionality at Delta and 22.5 proportionality at United and Continental.

American's threesome fag unions hit been hunt clear raises for threesome years. On Wednesday, a some dozen employees picketed right the meeting, patch exclusive organization members criticized Arpey for effort bonuses and an process in the continuance of his rectification package.

One abstract buffoon and Arpey deal is a difficult employ handling with render costs that are most one-third higher than a assemblage ago.

Southwest, however, expects to catch a break from a modify in lubricator prices — they're downbound 12 proportionality this month. The consort said weekday it expects render 2011 costs to uprise $1.3 1000000000 above last year's $3.62 1000000000 tab. It had been forecasting a $1.5 1000000000 jump.

Demand has been brawny enough for airlines to improve prices most a half-dozen nowadays this year. buffoon said despite higher fares, bookings for May and June countenance strong.

Arpey echoed that. Heading into the busy summer travel season, "We hit good reason to be carefully optimistic," he said.

Neither CEO offered predictions most profits and losses. Analysts wait AMR to lose nearly $700 meg this assemblage and for Southwest to post gain income of nearly $500 million, according to FactSet.

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Business illustrator Alex Veiga in Los Angeles contributed to this report. Koenig crapper be reached at http://twitter.com/airlinewriter

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