Airline Credit Unions Remain Resilient

First Look analysis of three airline credit unions shows they are supporting their uncertain membership well in the wake of September 11.

 
 

About six months ago, a number of factors converged at one highly volatile point, creating a highly unstable economy and dealing a tremendous blow to certain industries. With many credit unions revolving around employee-based membership, could certain industries' hard-knocks translate into tough times for those credit unions? Immediately the airline industry comes to mind. Airline credit unions always rank among the elite of the industry. When these airlines suffer, and their employees suffer, will the employees' financial institutions subsequently suffer?

American Airlines Federal Credit Union reported their first quarter data to Callahan & Associates this past week as a participant in the First Look program. Two reported quarters after 9/11 shocked a nation and rattled an economy, American Airlines FCU remains a prominent, well-performing institution. Their six-month growth figures stand up for themselves:

  • 5.7% Asset Growth
  • 6.2% Share Growth
  • 2.8% Loan Growth

Productivity ratios show more of the same. Annualized total income per employee is at $480,000. So far, 33 credit unions over $1 Billion in assets have also filed their call reports with First Look and their average income per employee is at $270,000.

Averaging American Airlines, Delta Employees, and Boeing Employees Credit Unions and comparing them to the competitive 33 credit unions over $1 Billion in assets show that these airline-affiliated credit unions have the right stuff. Six-month growth figures for these airline affiliates are even better than American Airlines as a stand-alone:

  • 6.1% Asset Growth
  • 7.0% Share Growth
  • 4.4% Loan Growth


Their productivity also out-shone the rest, averaging $399,000 total income (annualized) per employee.

While the airline industry continues to report losses in quarterly earnings, its credit unions still thrive. Especially in uncertain economic times, people need the confidence of relying on a trusted financial institution. In such times, they know to turn to their credit unions for sound financial advice and good value.

 

 

 

April 29, 2002


Comments

 
 
 
  • very timely information
    Anonymous
     
     
     
  • Very interesting and relevant. Interested in seeing more on other industries...how about Univeristy charters?
    Anonymous