Table 12. International Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits, 4Q 2017
Reports from 18 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)||7,821.8||8,328.1||506.3||6.47||81.85|
|Total Operating Revenue***||9,481.8||10,174.9||693.1||7.31||100.00|
|Depreciation & Amortization||572.0||648.9||76.9||13.44||6.69|
|Total Operating Expense||8,901.0||9,692.7||791.7||8.89||100.00|
|Profits or Losses|
|Operating Margin# (%)||6.1||4.7||-1.4||N/A||N/A|
|Income Tax Benefit/(Expense)||-237.2||-95.0||142.2||-59.95||N/A|
|Net Margin### (%)||2.7||2.9||0.2||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