Table 4. Jan-Dec U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits, 4Q 2017
Reports from 23 airlines in 2017, (Millions of dollars)
|Jan-Dec 2016||Jan-Dec 2017||Change||2016-2017 % Change||% of YTD 2017 Revenue or Expense Total|
|Passenger Fares (scheduled/charter)||125,916.4||130,493.1||4,576.7||3.63||74.42|
|Total Operating Revenue***||169,157.8||175,339.8||6,182.0||3.65||100.00|
|Depreciation & Amortization||8,773.2||9,050.5||277.3||3.16||5.88|
|Total Operating Expense||143,791.8||153,900.3||10,108.5||7.03||100.00|
|Profits or Losses|
|Operating Margin# (%)||15.0||12.2||-2.8||N/A||N/A|
|Income Tax Benefit/(Expense)||-7,988.5||-3,658.0||4,330.5||-54.21||N/A|
|Net Margin### (%)||8.3||8.8||0.5||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 http://www.transtats.bts.gov/Fields.asp?Table_ID=295 and P6 http://www.transtats.bts.gov/Fields.asp?Table_ID=291