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Table 4. Jan-Dec U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits

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

Jan-Dec 2015Jan-Dec 2016Change2015-2016 % Change% of YTD 2016 Revenue or Expense Total
Operating Revenue
Passenger Fares (scheduled/charter)127,060.9125,244.9-1,816.0-1.4374.48
Cargo2,890.12,629.2-260.9-9.031.56
Baggage3,813.54,185.8372.39.762.49
Reservation Changes3,011.82,895.9-115.9-3.851.72
Transport-Related*27,385.227,943.2558.02.0416.62
Other**4,895.45,266.7371.37.583.13
Total Operating Revenue***169,056.9168,165.7-891.2-0.53100.00
Operating Expense
Fuel26,979.122,366.6-4,612.5-17.1015.60
Labor45,487.049,712.74,225.79.2934.68
Rentals8,632.38,792.3160.01.856.13
Depreciation & Amortization7,512.58,748.31,235.816.456.10
Landing Fees2,853.32,939.185.83.012.05
Maintenance Materials2,520.52,467.6-52.9-2.101.72
Transport-Related*18,172.517,995.4-177.1-0.9712.55
Other****28,913.230,317.31,404.14.8621.15
Total Operating Expense141,070.4143,339.32,268.91.61100.00
Profits or Losses
Operating Profit27,986.524,826.4-3,160.1-11.29N/A
Operating Margin# (%)16.614.8-1.8N/AN/A
Nonoperating Income/(Expense)##-4,109.4-3,299.6809.8-19.71N/A
Pre-Tax Income23,877.221,526.7-2,350.5-9.84N/A
Income Tax Benefit/(Expense)910.5-7,988.5-8,899.0-977.38N/A
Other Income/(Expense)0.00.00.00.0N/A
Net Income24,787.713,538.2-11,249.5-45.38N/A
Net Margin### (%)14.78.1-6.6N/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.

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