Table 10. Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits
Reports from 25 airlines in 4Q 2016, (Millions of dollars)
|4Q 2015||4Q 2016||Change||2015-2016 % Change||% of 4Q 2016 Revenue or Expense Total|
|Passenger Fares (scheduled/charter)||30,168.1||30,449.6||281.5||0.93||74.08|
|Total Operating Revenue***||40,525.2||41,103.3||578.1||1.43||100.00|
|Depreciation & Amortization||1,939.4||2,155.0||215.6||11.12||5.82|
|Total Operating Expense||34,738.4||37,001.1||2,262.7||6.51||100.00|
|Profits or Losses|
|Operating Margin# (%)||14.5||10.0||-4.5||N/A||N/A|
|Income Tax Benefit/(Expense)||2,299.4||-1,444.3||-3,743.7||-162.81||N/A|
|Net Margin### (%)||17.0||4.9||-12.1||N/A||N/A|
* Transport-Related is revenue/expenses from services which grow from and are incidental to the air transportation services performed by the air carrier. Examples are in-flight onboard sales (food, liquor, pillows, etc), code share revenues, revenues and expenses from associated businesses (aircraft maintenance, fuel sales, restaurants, vending machines, etc).
** Other revenue includes miscellaneous operating revenue (including pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees) and public service revenues subsidy.
*** Based on U.S. Department of Transportation accounting standards, Total Operating Revenues are overstated by code share revenues which are included in both the mainline Transport-Related Revenues and the code share Passenger Revenue. Code share revenues are expensed out in the mainline Transport-Related Expense to allow a true Operating Profit(Loss). This reporting may understate all components of operating revenue, including Passenger Revenue, as a percentage of Total Operating Revenue.
**** Other expense includes purchase of materials such as passenger food and other materials; and purchase of services such as advertising, communication, insurance, outside flight equipment maintenance, traffic commissions and other services.
# Operating margin is the operating profit or loss as a percentage of operating revenue
## Nonoperating Income and Expense includes interest on long-term debt and capital leases, other interest expense, foreign exchange gains and losses, capital gains and losses and other income and expenses.
### Net margin is the net income or loss as a percentage of operating revenue.
Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6