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Table 11. Domestic Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits, 4Q 2017

Reports from 23 airlines in 4Q 2017, (Millions of dollars)

4Q 20164Q 2017Change2016-2017 % Change% of 4Q 2017 Revenue or Expense Total
Operating Revenue
Passenger Fares (scheduled/charter)23,299.323,946.2646.92.7871.13
Reservation Changes449.0452.03.00.671.34
Total Operating Revenue***32,613.733,664.21,050.53.22100.00
Operating Expense
Depreciation & Amortization1,607.81,659.551.73.225.52
Landing Fees591.3580.4-10.9-1.841.93
Maintenance Materials502.8469.3-33.5-6.661.56
Total Operating Expense28,552.630,041.91,489.35.22100.00
Profits or Losses
Operating Profit4,061.13,622.3-438.8-10.80N/A
Operating Margin# (%)12.510.8-1.7N/AN/A
Nonoperating Income/(Expense)##-556.5-448.4108.1-19.42N/A
Pre-Tax Income3,504.63,173.9-330.7-9.44N/A
Income Tax Benefit/(Expense)-1,207.11,670.12,877.2-238.36N/A
Other Income/(Expense)
Net Income2,297.54,844.02,546.5110.84N/A
Net Margin### (%)
* 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