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Table 10. Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits, 4Q 2017
Reports from 23 airlines in 4Q 2017, (Millions of dollars)
|4Q 2016||4Q 2017||Change||2016-2017 % Change||% of 4Q 2017 Revenue or Expense Total|
|Passenger Fares (scheduled/charter)||31,121.1||32,274.3||1,153.2||3.71||73.62|
|Total Operating Revenue***||42,095.5||43,839.1||1,743.6||4.14||100.00|
|Depreciation & Amortization||2,179.8||2,308.4||128.6||5.90||5.81|
|Total Operating Expense||37,453.6||39,734.6||2,281.0||6.09||100.00|
|Profits or Losses|
|Operating Margin# (%)||11.0||9.4||-1.7||N/A||N/A|
|Income Tax Benefit/(Expense)||-1,444.3||1,575.1||3,019.4||-209.06||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