Table 5. Jan-Dec U.S. Scheduled Domestic 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)||91,906.0||95,121.4||3,215.4||3.50||71.66|
|Total Operating Revenue***||126,738.7||132,747.7||6,009.0||4.74||100.00|
|Depreciation & Amortization||6,206.9||6,443.9||237.0||3.82||5.61|
|Total Operating Expense||106,839.5||114,890.6||8,051.1||7.54||100.00|
|Profits or Losses|
|Operating Margin# (%)||15.7||13.5||-2.2||N/A||N/A|
|Income Tax Benefit/(Expense)||-6,707.1||-2,587.7||4,119.4||-61.42||N/A|
|Net Margin### (%)||8.1||10.1||2.0||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