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Table 10. Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits

Reports from 25 airlines in 4Q 2016, (Millions of dollars)

4Q 20154Q 2016Change2015-2016 % Change% of 4Q 2016 Revenue or Expense Total
Operating Revenue
Passenger Fares (scheduled/charter)30,168.130,449.6281.50.9374.08
Cargo710.7717.36.60.931.75
Baggage957.81,029.071.27.432.50
Reservation Changes715.0660.9-54.1-7.571.61
Transport-Related*6,700.96,949.2248.33.7116.91
Other**1,272.71,297.324.61.933.16
Total Operating Revenue***40,525.241,103.3578.11.43100.00
Operating Expense
Fuel5,819.45,843.524.10.4115.79
Labor11,554.912,954.51,399.612.1135.01
Rentals2,163.42,188.224.81.155.91
Depreciation & Amortization1,939.42,155.0215.611.125.82
Landing Fees694.3712.217.92.581.92
Maintenance Materials672.3615.8-56.5-8.401.66
Transport-Related*4,351.24,521.9170.73.9212.22
Other****7,543.58,010.0466.56.1821.65
Total Operating Expense34,738.437,001.12,262.76.51100.00
Profits or Losses
Operating Profit5,886.84,102.2-1,784.6-30.32N/A
Operating Margin# (%)14.510.0-4.5N/AN/A
Nonoperating Income/(Expense)##.-1295.6-648.5647.150.00N/A
Pre-Tax Income4,591.23,453.8-1,137.4-24.77N/A
Income Tax Benefit/(Expense)2,299.4-1,444.3-3,743.7-162.81N/A
Other Income/(Expense)0.00.00.00.0N/A
Net Income6,890.72,009.5-4,881.2-70.84N/A
Net Margin### (%)17.04.9-12.1N/AN/A
Notes: 

* 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.

Source: 

Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6