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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

1st Quarter 2017 Airline Financial Data

Monday, June 19, 2017

Download Excel Tables 

U.S. scheduled passenger airlines reported an after-tax net profit of $1.9 billion in the first quarter of 2017, down from $2.0 billion in the fourth quarter of 2016 and down from $3.1 billion in the first quarter of 2016, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today (Table 1).  

The 24 U.S. scheduled service passenger airlines reported an after-tax net profit as a group for the 16th consecutive quarter.

In addition to the after-tax net profit of $ 1.9 billion based on net income reports, the scheduled service passenger airlines reported a $3.3 billion pre-tax operating profit in the first quarter of 2017, down from $4.1 billion in the fourth quarter of 2016 and down from $5.6 billion in the first quarter of 2016. The airlines reported a pre-tax operating profit - as a group - for the 24th consecutive quarter (Tables 1, 4).

Net profit or loss and operating profit or loss are two different measures of airline financial performance. Net profit or loss includes non-operating income and expenses, nonrecurring items or income taxes. Operating profit or loss is calculated from operating revenues and expenses before taxes and other nonrecurring items.

Total operating revenue for all U.S. passenger airlines in the January-March first-quarter of 2017 was $39.7 billion. Airlines collected $29.4 billion from fares, 74.0 percent of total first-quarter operating revenue (Table 4).

Total operating expenses for all passenger airlines in the first-quarter of 2017 were $36.4 billion, of which fuel costs accounted for $5.9 billion, or 16.3 percent, and labor costs accounted for $12.8 billion, or 35.1 percent (Table 4).

In the first quarter, scheduled passenger airlines collected a total of $1.0 billion in baggage fees, 2.6 percent of total operating revenue, and $723.6 million from reservation change fees, 1.8 percent of total operating revenue. Fees are included for calculations of net income, operating revenue and operating profit or loss (Table 4).

Baggage fees and reservation change fees are the only ancillary fees paid by passengers that are reported to BTS as separate items. Other fees, such as revenue from seating assignments and on-board sales of food, beverages, pillows, blankets, and entertainment are combined in different categories and cannot be identified separately.

See airline financial data press releases and the airline financial databases  for historical data.

Domestic

From domestic operations, U.S. scheduled passenger airlines reported an after-tax net profit of $1.9 billion in the first quarter of 2017, up from $1.8 billion in the fourth quarter of 2016 and down from $2.1 billion in the first quarter of 2016 (Table 2). 

 

The 24 U.S. scheduled service passenger airlines reported an after-tax net profit from domestic operations as a group for the 16th consecutive quarter.

In addition to the after-tax net profit of $1.9 billion based on net income reports, the scheduled service passenger airlines reported a $3.0 billion pre-tax operating profit from domestic operations in the first quarter of 2017, down from $3.5 billion in the fourth quarter of 2016 and down from $4.3 billion in the first quarter of 2016. The airlines reported a pre-tax operating profit from domestic operations - as a group - for the 24th consecutive quarter (Table 2).

Total operating revenue from domestic operations for all U.S. passenger airlines in the January-March first-quarter of 2017 was $30.4 billion. Airlines collected $21.7 billion from fares, 71.5 percent of total first-quarter operating revenue (Tables 2, 5).

Total operating expenses from domestic operations for all passenger airlines in the first-quarter of 2017 were $27.4 billion, of which fuel costs accounted for $4.1 billion, or 14.8 percent, and labor costs accounted for $9.4 billion, or 34.2 percent (Tables 2, 5).

In the first quarter, passenger airlines collected from domestic operations a total of $818 million in baggage fees, 2.7 percent of total operating revenue, and $477 million from reservation change fees, 1.6 percent of total operating revenue (Tables 2, 5).

International

The 17 U.S. scheduled passenger airlines that operate internationally reported an after-tax net profit of $86 million in the first quarter of 2017 from their international operations, down from $244 million in the fourth quarter of 2016 and down from $985 million in the first quarter of 2016 (Table 3).

 

The 17 U.S. scheduled service passenger airlines reported an after-tax net profit from international operations as a group for the ninth consecutive quarter.

In addition to the after-tax net profit of $86 million based on net income reports, the scheduled service passenger airlines reported a $277 million pre-tax operating profit from international operations in the first quarter of 2017, down from $569 million in the fourth quarter of 2016 and down from $1.3 billion in the first quarter of 2016. The airlines reported a pre-tax operating profit from international operations - as a group - for the 20th consecutive quarter (Table 3).

Total operating revenue from international operations for all U.S. passenger airlines in the January-March first-quarter of 2017 was $9.3 billion. Airlines collected $7.7 billion from fares, 82.3 percent of total first-quarter operating revenue (Tables 3, 6).

Total operating expenses from international operations for all passenger airlines in the first-quarter of 2017 were $9.0 billion, of which fuel costs accounted for $1.9 billion, or 20.7 percent, and labor costs accounted for $3.4 billion, or 37.8 percent (Tables 3, 6).

In the first quarter, passenger airlines collected from international operations a total of $209 million in baggage fees, 2.2 percent of total operating revenue, and $246 million from reservation change fees, 2.6 percent of total operating revenue (Tables 3, 6).

1st Quarter Margins for All Scheduled Passenger Airlines

All U.S. scheduled passenger airlines reported a combined net income margin of 4.9 percent in the first quarter of 2017, down from a net margin of 7.8 percent in the first quarter of 2016. Net margin is the net income or loss as a percentage of operating revenue. These airlines reported an operating profit margin of 8.2 percent in the first quarter of 2017, down from 14.3 percent in the first quarter of 2016. Operating margin is the operating profit or loss as a percentage of operating revenue (Table 4).

Reporting notes

Additional airline financial data can be found on the BTS website, including industry statistics for other individual low-cost and regional airlines. See tables for operating profit/loss, operating revenue and fuel cost and consumption. See the BTS financial databases for more detailed data.

By regulation, for the quarter ending March 31, airlines that operate at least one aircraft that has more than 60 seats or the capacity to carry a payload of passengers, cargo and fuel weighing more than 18,000 pounds must report financial data to BTS by May 15. The airline filings are subject to a process of quality assurance and data validations before release to the public.

Revised carrier data and late data filings will be made available monthly on TranStats on the Monday following the second Tuesday of the month. All data are subject to revision. BTS will release second-quarter 2017 data on Sept. 18.

 

Table 1. Quarterly U.S. Scheduled Service Passenger Airlines Financial Reports, 1Q 2017

1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Dollar Change 1Q2016-1Q2017
Net Income 3,056 4,649 3,825 2,010 1,939 -1,117
Operating Profit/Loss 5,605 7,873 7,248 4,102 3,267 -2,337
Operating Revenue* 39,151 43,505 44,406 41,103 39,696 544
Fares 29,008 32,462 33,325 30,450 29,387 379
Baggage Fees 983 1,073 1,101 1,029 1,027 44
Reservation Change Fees 749 755 731 661 724 -26
Operating Expenses 33,547 35,632 37,158 37,001 36,428 2,881
Fuel 4,860 5,566 6,096 5,844 5,938 1,078
Labor 11,798 12,213 12,748 12,955 12,784 986
Notes:

* Passenger airline operating revenue includes four other categories.  1) Transport-related is revenue 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 from associated businesses (aircraft maintenance, fuel sales, restaurants, vending machines, etc). 2) Miscellaneous operating revenue includes pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees.   3)  Cargo revenue from transporting cargo in belly of aircraft.  4)  Mail revenue from transporting mail in belly of aircraft.  See the P1.2 database http://www.transtats.bts.gov/Fields.asp?Table_ID=295.

Source:

Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6

Table 2. Domestic Quarterly U.S. Scheduled Service Passenger Airlines Financial Reports, 1Q 2017

Domestic Operations 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Dollar Change 1Q2016-1Q2017
Net Income 2,072 3,328 2,599 1,766 1,853 -219
Operating Profit/Loss 4,292 6,105 5,442 3,533 2,991 -1,301
Operating Revenue* 28,727 32,463 32,935 31,622 30,395 1,668
Fares 21,359 23,650 23,598 22,628 21,730 372
Baggage Fees 773 848 868 822 818 45
Reservation Change Fees 481 483 468 439 477 -4
Operating Expenses 24,434 26,358 27,493 28,089 27,404 2,970
Fuel 3,323 3,762 4,080 4,038 4,069 746
Labor 8,530 8,767 9,172 9,512 9,370 841
Notes:

* Passenger airline operating revenue includes four other categories.  1) Transport-related is revenue 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 from associated businesses (aircraft maintenance, fuel sales, restaurants, vending machines, etc). 2) Miscellaneous operating revenue includes pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees.   3)  Cargo revenue from transporting cargo in belly of aircraft.  4)  Mail revenue from transporting mail in belly of aircraft.  See the P1.2 database http://www.transtats.bts.gov/Fields.asp?Table_ID=295.

Source:

Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6

Table 3. International Quarterly U.S. Scheduled Service Passenger Airlines Financial Reports, 1Q 2017

International Operations 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Dollar Change 1Q2016-1Q2017
Net Income 985 1,321 1,226 244 86 -899
Operating Profit/Loss 1,312 1,768 1,806 569 277 -1,036
Operating Revenue* 10,425 11,042 11,470 9,482 9,301 -1,124
Fares 7,650 8,812 9,727 7,822 7,656 7
Baggage Fees 210 225 233 207 209 -2
Reservation Change Fees 268 273 263 222 246 -22
Operating Expenses 9,112 9,274 9,665 8,913 9,024 -89
Fuel 1,537 1,804 2,016 1,806 1,868 331
Labor 3,268 3,446 3,576 3,443 3,414 145
Notes:

Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6

Source:

* Passenger airline operating revenue includes four other categories.  1) Transport-related is revenue 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 from associated businesses (aircraft maintenance, fuel sales, restaurants, vending machines, etc). 2) Miscellaneous operating revenue includes pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees.   3)  Cargo revenue from transporting cargo in belly of aircraft.   4)  Mail revenue from transporting mail in belly of aircraft.  See the P1.2 database http://www.transtats.bts.gov/Fields.asp?Table_ID=295.

Table 4. Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits, 1Q 2017

1Q 2016 1Q 2017 Change 2016-2017 % Change % of 1Q 2017 Revenue or Expense Total
Operating Revenue
Passenger Fares (scheduled/charter) 29,008.2 29,386.7 378.5 1.30 74.03
Cargo 602.8 645.9 43.1 7.15 1.63
Baggage 983.2 1,027.1 43.9 4.47 2.59
Reservation Changes 749.3 723.6 -25.7 -3.43 1.82
Transport-Related* 6,517.5 6,577.5 60.0 0.92 16.57
Other** 1,290.3 1,334.7 44.4 3.44 3.36
Total Operating Revenue*** 39,151.3 39,695.5 544.2 1.39 100.00
Operating Expense
Fuel 4,860.3 5,937.5 1,077.2 22.16 16.30
Labor 11,797.7 12,783.9 986.2 8.36 35.09
Rentals 2,190.3 2,218.3 28.0 1.28 6.09
Depreciation & Amortization 2,010.1 2,192.2 182.1 9.06 6.02
Landing Fees 692.6 714.0 21.4 3.09 1.96
Maintenance Materials 628.0 636.3 8.3 1.32 1.75
Transport-Related* 4,298.8 4,498.7 199.9 4.65 12.35
Other**** 7,068.9 7,447.2 378.3 5.35 20.44
Total Operating Expense 33,546.7 36,428.1 2,881.4 8.59 100.00
Profits or Losses
Operating Profit 5,604.5 3,267.4 -2,337.1 -41.70 N/A
Operating Margin# (%) 14.3 8.2 -6.1 N/A N/A
Nonoperating Income/(Expense)## -895.6 -700.6 647.1 50.00 N/A
Pre-Tax Income 4,708.9 2,566.6 -2,142.3 -45.49 N/A
Income Tax Benefit/(Expense) -1,652.5 -628.2 1,024.3 -61.98 N/A
Other Income/(Expense) 0.0 0.0 0.0 0.0 N/A
Net Income 3,056.4 1,938.6 -1,117.8 -36.57 N/A
Net Margin### (%) 7.8 4.9 -2.9 N/A N/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.

 

Source:

Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6

Table 5. Domestic Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits, 1Q 2017

1Q 2016 1Q 2017 Change 2016-2017 % Change % of 1Q 2017 Revenue or Expense Total
Operating Revenue
Passenger Fares (scheduled/charter) 21,358.5 21,730.4 371.9 1.74 71.49
Cargo 209.0 230.3 21.3 10.19 0.76
Baggage 773.0 818.4 45.4 5.87 2.69
Reservation Changes 480.9 477.3 -3.6 -0.75 1.57
Transport-Related* 4,874.8 6,046.5 1,171.7 24.04 19.89
Other** 1,030.4 1,092.1 61.7 5.99 3.59
Total Operating Revenue*** 28,726.6 30,395.0 1,668.4 5.81 100.00
Operating Expense
Fuel 3,323.4 4,069.3 745.9 22.44 14.85
Labor 8,529.6 9,370.4 840.8 9.86 34.19
Rentals 1,668.4 1,724.6 56.2 3.37 6.29
Depreciation & Amortization 1,421.0 1,571.3 150.3 10.58 5.73
Landing Fees 522.6 550.0 27.4 5.24 2.01
Maintenance Materials 460.5 485.3 24.8 5.39 1.77
Transport-Related* 3,555.8 4,312.6 756.8 21.28 15.74
Other**** 4,953.1 5,320.8 367.7 7.42 19.42
Total Operating Expense 24,434.4 27,404.3 2,969.9 12.15 100.00
Profits or Losses
Operating Profit 4,292.2 2,990.7 -1,301.5 -30.32 N/A
Operating Margin# (%) 14.9 9.8 -5.1 N/A N/A
Nonoperating Income/(Expense)## -767.1 -577.6 189.5 -24.70 N/A
Pre-Tax Income 3,525.0 2,413.0 -1,112.0 -31.55 N/A
Income Tax Benefit/(Expense) -1,453.2 -560.4 892.8 -61.44 N/A
Other Income/(Expense) 0.0 0.0 0.0 0.0 N/A
Net Income 2,071.8 1,852.7 -219.1 -10.58 N/A
Net Margin### (%) 7.2 6.1 -1.1 N/A N/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.
Source:

Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6

Table 6. International Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits, 1Q 2017

1Q 2016 1Q 2017 Change 2016-2017 % Change % of 1Q 2017 Revenue or Expense Total
Operating Revenue
Passenger Fares (scheduled/charter) 7,649.7 7,656.3 6.6 0.09 82.32
Cargo 393.8 415.6 21.8 5.54 4.47
Baggage 210.2 208.7 -1.5 -0.71 2.24
Reservation Changes 268.4 246.3 -22.1 -8.23 2.65
Transport-Related* 1,642.7 531.0 -1,111.7 -67.68 5.71
Other** 259.9 242.6 -17.3 -6.66 2.61
Total Operating Revenue*** 10,424.7 9,300.5 -1,124.2 -10.78 100.00
Operating Expense
Fuel 1,536.9 1,868.2 331.3 21.56 20.70
Labor 3,268.1 3,413.5 145.4 4.45 37.83
Rentals 521.9 493.7 -28.2 -5.40 5.47
Depreciation & Amortization 589.1 620.9 31.8 5.40 6.88
Landing Fees 170.0 164.0 -6.0 -3.53 1.82
Maintenance Materials 167.5 151.0 -16.5 -9.85 1.67
Transport-Related* 743.0 186.1 -556.9 -74.95 2.06
Other**** 2,115.8 2,126.4 10.6 0.50 23.56
Total Operating Expense 9,112.3 9,023.8 -88.5 -0.97 100.00
Profits or Losses
Operating Profit 1,312.3 276.7 -1,035.6 -78.91 N/A
Operating Margin# (%) 12.6 3.0 -9.6 N/A N/A
Nonoperating Income/(Expense)## -128.5 -123.0 5.5 -4.28 N/A
Pre-Tax Income 1,183.9 153.6 -1,030.3 -87.03 N/A
Income Tax Benefit/(Expense) -199.3 -67.8 131.5 -65.98 N/A
Other Income/(Expense) 0.0 0.0 0.0 0.0 N/A
Net Income 984.6 85.9 -898.7 -91.28 N/A
Net Margin### (%) 9.4 0.9 -8.5 N/A N/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.
Source:

Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6