The U.S. airline industry is reporting a record fourth quarter profit that makes 2010 a big year for the carriers, with combined annual earnings for the top airlines estimated to be near $4 billion, according to AirlineFinancials.com analyst Robert Herbst.

The Air Transport Association of America (ATA) noted that passenger revenues rose 9 percent in December 2010 compared to December 2009, making it a banner year with 12 consecutive months of revenue growth.

Miles flown by paying passengers rose 3 percent while the average price to fly one mile rose 6 percent.

Delta Air Lines (NYSE: DAL) led the way with $19 million in fourth-quarter earnings, which puts Delta’s net income for 2010 at $593 million. This is Delta’s first fourth-quarter profit since 2000, and its first annual profit since 2007.

“Our 2010 results are among the best in Delta’s history,” said Delta CEO Richard Anderson, in a statement. “These results are a direct reflection of the success of our merger, cost discipline and debt reduction strategy and give us momentum to deal with the rising fuel prices we face in 2011.”

But Delta still missed the earnings target set by analysts, based mostly on account of the rising cost of fuel.

Southwest Airlines (NYSE:LUV) announced a fourth-quarter net income of $131 million, which takes their 2010 net income to $459 million. That makes it 38 consecutive years of profitability for Southwest.

US Airways (NYSE: LCC) is also expected to post a 2010 profit just shy of $490 million, acording to consensus estimates from analysts compiled by Bloomberg News. United Continental Holdings Inc. (NYSE:UAL) is expected to hit the charts with a combined 2010 United-Continental income of around $1.33 billion.

American Airlines parent AMR Corp. (NYSE: AMR) is the only airline company among the top five that is still in the red, with a net loss of $0.29 per share for the fourth quarter of 2010. That works out to a $97 million fourth-quarter loss and a $471 million loss for 2010.

AMR’s 2010 results are a huge improvement over 2009, when it took a $1.5 billion hit, and analysts expect AMR to turnaround with a profit in 2011. “American is well positioned to capitalize on the opportunities unfolding in the marketplace,” said Gerard Arpey, AMR’s Chief Executive Officer, in a statement. “While the road forward is not without challenges, as we begin 2011, we are enthusiastic about the possibilities we see ahead.”

2010 Airline Industry Earnings Roundup:-

Delta Air Lines  (NYSE: DAL) - $593 million

AMR Corp. (NYSE: AMR) - $471 million loss

Southwest Airlines (NYSE:LUV) - $459 million

Alaska Airlines (NYSE:ALK) – $251.1 million

United Continental Holdings Inc.  (NYSE:UAL) – $253 million ($1.6 billion excluding $765 million of special items that include merger costs)

US Airways (NYSE: LCC) – $447 million

Jetblue (NASDAQ:JBLU) – $97 million

Airtran Airways (NYSE:AAI) – $38.5 million

Hawaiian Airlines (NASDAQ:HA) – $45.4 million ($110.3 million inclusive of beneficial non-recurring tax items)

Allegiant Travel Company (NASDAQ:ALGT) - $65.7 million

Photo courtesy Delta Air Lines