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2017 Annual Results for All Scheduled Passenger Airlines

U.S. scheduled passenger airlines reported an after-tax net profit of $15.5 billion in 2017, up from $14.0 billion in 2016 (Table 1).

The 23 U.S. scheduled service passenger airlines reported an after-tax net profit as a group for the fifth consecutive year based on net income reports.

The 23 U.S. scheduled service passenger airlines reported an after-tax net profit as a group for the fifth consecutive year based on net income reports.

The airlines also reported a $21.4 billion pre-tax operating profit in 2017, down from $25.4 billion in 2016. The airlines reported a pre-tax operating profit as a group for the ninth consecutive year (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 2017 operating revenue was $175.3 billion. The airlines collected $130.5 billion from fares, 74.4 percent of total operating revenue (Table 4).

Total 2017 operating expenses were $153.9 billion, of which fuel costs accounted for $26.2 billion, or 17.1 percent, and labor costs accounted for $53.6 billion, or 34.8 percent (Table 4).

The airlines collected $4.6 billion in baggage fees, 2.6 percent of total operating revenue, and $2.9 billion from reservation change fees, 1.6 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 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 $13.4 billion in 2017, up from $10.3 billion in 2016 (Table 2). 

The 23 scheduled service passenger airlines reported an after-tax net profit from domestic operations as a group for the fifth consecutive year based on net income reports.

The airlines also reported a $17.9 billion pre-tax operating profit from domestic operations in 2017, down from $19.9 billion in 2016. The airlines reported a pre-tax operating profit from domestic operations as a group for the ninth consecutive year (Table 2).

Total 2017 operating revenue from domestic operations was $132.7 billion. The airlines collected $95.1 billion from fares, 71.7 percent of total 2017 domestic operating revenue (Tables 2, 5).

Total 2017 operating expenses from domestic operations were $114.9 billion, of which fuel costs accounted for $17.8 billion, or 15.5 percent, and labor costs accounted for $39.0 billion, or 33.9 percent (Tables 2, 5).

Scheduled passenger airlines collected from domestic operations $3.6 billion in baggage fees, 2.7 percent of total domestic operating revenue, and $1.9 billion from reservation change fees, 1.4 percent of total domestic operating revenue (Tables 2, 5).

International

The 18 U.S. scheduled passenger airlines that operate internationally reported an after-tax net profit of $2.1 billion in 2017 from their international operations, down from $3.8 billion in 2016 (Table 3).

The airlines reported an after-tax net profit from international operations as a group for the eighth consecutive year based on net income reports.

The airlines also reported a $3.6 billion pre-tax operating profit from international operations in 2017, down from $5.5 billion in 2016. The airlines reported a pre-tax operating profit from international operations as a group for the ninth consecutive year (Table 3).

Total 2017 operating revenue from international operations was $42.6 billion. Airlines collected $35.4 billion from fares, 83.1 percent of total international operating revenue (Tables 3, 6).

Total operating expenses from international operations for all passenger airlines in 2017 were $39.0 billion, of which fuel costs accounted for $8.4 billion, or 21.6 percent, and labor costs accounted for $14.6 billion, or 37.4 percent (Tables 3, 6).

The airlines collected from international operations $964.4 million in baggage fees, 2.3 percent of total international operating revenue, and $982.2 million from reservation change fees, 2.3 percent of total international operating revenue (Tables 3, 6).

Annual Margins for All Scheduled Passenger Airlines

The 23 U.S. scheduled passenger airlines reported a combined net income margin of 8.8 percent in 2017, up from a net margin of 8.3 percent in 2016. Net margin is the net income or loss as a percentage of operating revenue. These airlines reported an operating profit margin of 12.2 percent in 2017, down from 15.0 percent in 2016. Operating margin is the operating profit or loss as a percentage of operating revenue (Table 4).

4th Quarter Results for All Scheduled Passenger Airlines

The 23 scheduled passenger airlines reported an after-tax net profit of $5.1 billion in the fourth quarter of 2017, up from $3.7 billion in the third quarter and up from $2.6 billion in the fourth quarter of 2016 (Table 7). 

The airlines reported an after-tax net profit as a group for the 19th consecutive quarter based on net income reports.

The scheduled service passenger airlines also reported a $4.1 billion pre-tax operating profit in the fourth quarter of 2017, down from $6.3 billion in the third quarter and up from $4.6 billion in the fourth quarter of 2016. The airlines reported a pre-tax operating profit as a group for the 27th consecutive quarter (Tables 7, 10).

Total operating revenue for all U.S. passenger airlines in the October-December fourth-quarter of 2017 was $43.8 billion. Airlines collected $32.3 billion from fares, 73.6 percent of total fourth-quarter operating revenue (Table 7, 10).

Total operating expenses were $39.7 billion, of which fuel costs accounted for $7.1 billion, or 17.8 percent, and labor costs accounted for $13.6 billion, or 34.1 percent (Table 7, 10).

In the fourth quarter, the airlines collected $1.2 billion in baggage fees, 2.6 percent of total operating revenue, and $675.0 million from reservation change fees, 1.5 percent of total operating revenue. Fees are included for calculations of net income, operating revenue and operating profit or loss (Table 7, 10).

Domestic

From domestic operations, U.S. scheduled passenger airlines reported an after-tax net profit of $4.8 billion in the fourth quarter of 2017, up from $2.6 billion in the third quarter of 2017 and up from $2.3 billion in the fourth quarter of 2016 (Table 8).

The 23 U.S. scheduled service passenger airlines reported an after-tax net profit from domestic operations as a group for the 19th consecutive quarter based on net income reports.

The scheduled service passenger airlines reported a $3.6 billion pre-tax operating profit from domestic operations in the fourth quarter of 2017, down from $4.7 billion in the third quarter of 2017 and up from $4.1 billion in the fourth quarter of 2016. The airlines reported a pre-tax operating profit from domestic operations - as a group - for the 19th consecutive quarter (Table 8).

Total operating revenue from domestic operations for all U.S. passenger airlines in the October-December fourth-quarter of 2017 was $33.7 billion. Airlines collected $23.9 billion from fares, 71.1 percent of total fourth-quarter operating revenue (Tables 8, 11).

Total operating expenses from domestic operations for all passenger airlines were $30.0 billion, of which fuel costs accounted for $4.8 billion, or 16.1 percent, and labor costs accounted for $10.0 billion, or 33.4 percent (Tables 8, 11).

In the fourth quarter, passenger airlines collected from domestic operations $918 million in baggage fees, 2.7 percent of total domestic operating revenue, and $452.0 million from reservation change fees, 1.3 percent of total domestic operating revenue (Tables 8, 11).

International

The 18 U.S. scheduled passenger airlines that operate internationally reported an after-tax net profit of $297.1 million in the fourth quarter of 2017 from their international operations, down from $1.1 billion in the third quarter of 2017 and up from $254.0 million in the fourth quarter of 2016 (Table 9).

The airlines reported an after-tax net profit from international operations as a group for the 12th consecutive quarter based on net income reports.

The scheduled service passenger airlines reported a $482.2 million pre-tax operating profit from international operations in the fourth quarter of 2017, down from $1.6 billion in the third quarter of 2017 and down from $580.8 million in the fourth quarter of 2016. The airlines reported a pre-tax operating profit from international operations as a group for the 23rd consecutive quarter (Table 9).

Total operating revenue from international operations in the October-December fourth-quarter of 2017 was $10.2 billion. Airlines collected $8.3 billion from fares, 81.9 percent of total fourth-quarter operating revenue (Tables 9, 12).

Total fourth-quarter operating expenses from international operations were $9.7 billion, of which fuel costs accounted for $2.2 billion, or 22.8 percent, and labor costs accounted for $3.5 billion, or 36.5 percent (Tables 9, 12).

In the fourth quarter, passenger airlines collected from international operations a total of $239.4 million in baggage fees, 2.4 percent of total international operating revenue, and $223 million from reservation change fees, 2.2 percent of total international operating revenue (Tables 9, 12).

4th Quarter Margins for All Scheduled Passenger Airlines

All U.S. scheduled passenger airlines reported a combined net income margin of 11.7 percent in the fourth quarter of 2017, up from a net margin of 6.1 percent in the fourth 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 9.4 percent in the fourth quarter of 2017, down from 11.0 percent in the fourth quarter of 2016. Operating margin is the operating profit or loss as a percentage of operating revenue (Table 10).

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 Dec. 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 March 31. 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 first-quarter 2018 data on June 18.