You are here

Table 11. Domestic 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)22,355.522,627.8272.31.2271.56
Cargo245.4247.21.80.730.78
Baggage744.0821.677.610.432.60
Reservation Changes462.0439.3-22.7-4.911.39
Transport-Related*5,209.46,428.61,219.223.4020.33
Other**1,008.11,057.048.94.853.34
Total Operating Revenue***30,024.431,621.51,597.15.32100.00
Operating Expense
Fuel3,912.64,038.0125.43.2114.38
Labor8,493.19,511.91,018.812.0033.86
Rentals1,675.41,721.446.02.756.13
Depreciation & Amortization1,397.91,575.2177.312.685.61
Landing Fees536.9553.616.73.111.97
Maintenance Materials436.8470.633.87.741.68
Transport-Related*3,561.94,343.8781.921.9515.46
Other****5,387.75,874.1486.49.0320.91
Total Operating Expense25,402.328,088.62,686.310.58100.00
Profits or Losses
Operating Profit4,622.13,532.9-1,089.2-23.57N/A
Operating Margin# (%)15.411.2-4.2N/AN/A
Nonoperating Income/(Expense)##-1,067.8-560.0507.8-47.56N/A
Pre-Tax Income3,554.32,973.0-581.3-16.35N/A
Income Tax Benefit/(Expense)2,552.8-1,207.1-3,759.9-147.29N/A
Other Income/(Expense)0.00.00.00.0N/A
Net Income6,107.11,765.9-4,341.2-71.08N/A
Net Margin### (%)20.35.6-14.8N/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