After two dreadful years, including a $4 billion loss in 2009, 2010 will should solid profits, starting with second-quarter earnings due out next week.

“It’s a feast or famine industry,” says airline analyst Michael Derchin of CRT Capital Group. “We're now in the feast phase.”

Derchin and other industry watchers cite better-than-expected demand, especially in the international and business travel categories, industry discipline in keeping capacity tight (fewer, fuller planes) and high but manageable fuel prices as the main drivers.

“We are at a point where the industry is generating a fair amount of pricing power,” says airline consultant Robert Mann.

There’s nothing like higher prices to drive profits and the first set will be visible when Delta Air Lines reports second-quarter results Monday. One day later UnitedAirlines —which is merging with Continental —reports, followed by American Airlines parent company AMR on July 21 and Continental, July 22.

Derchin is forecasting the major airlines will post $1.7 billion in net profits for the second quarter, versus about a billion-dollar loss in the year-ago period; and $3 billion in the third quarter—which includes most of the fat summer-travel season—compared to a $250-million loss in the 2009 period.

He expects profits of $3.9 billion this year and $6.7 billion in 2011—not bad after seven unprofitable years in the past decade and what’s generally forecast to be a modest overall economic recovery.

For an industry that’s had more than its share of nasty external shocks, airlines are benefiting from a pleasant surprise or two.