The 24 U.S. scheduled service passenger airlines reported an after-tax net profit as a group for the 17th consecutive quarter.

In addition to the after-tax net profit of $4.7 billion based on net income reports, the scheduled service passenger airlines reported a $7.7 billion pre-tax operating profit in the second quarter of 2017, up from $3.3 billion in the first quarter and down from $7.9 billion in the second quarter of 2016. The airlines reported a pre-tax operating profit - as a group - for the 25th 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 April-June second-quarter of 2017 was $46.2 billion. Airlines collected $34.6 billion from fares, 75.0 percent of total second-quarter operating revenue (Table 4).

Total operating expenses for all passenger airlines in the second-quarter of 2017 were $38.5 billion, of which fuel costs accounted for $6.5 billion, or 16.8 percent, and labor costs accounted for $13.6 billion, or 35.4 percent (Table 4).

In the second quarter, scheduled passenger airlines collected a total of $1.2 billion in baggage fees, 2.6 percent of total operating revenue, and $737.5 million 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 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 $4.1 billion in the second quarter of 2017, up from $1.9 billion in the first quarter and up from $3.3 billion in the second 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 17th consecutive quarter.

In addition to the after-tax net profit of $4.1 billion based on net income reports, the scheduled service passenger airlines reported a $6.5 billion pre-tax operating profit in the second quarter of 2017, up from $3.0 billion in the first quarter and up from $6.1 billion in the second quarter of 2016. The airlines reported a pre-tax operating profit from domestic operations - as a group - for the 25th consecutive quarter (Table 2).

Total operating revenue from domestic operations for all U.S. passenger airlines in the April-June second-quarter of 2017 was $35.0 billion. Airlines collected $25.2 billion from fares, 72.2 percent of total second-quarter operating revenue (Tables 2, 5).

Total operating expenses from domestic operations for all passenger airlines in the second-quarter of 2017 were $28.5 billion, of which fuel costs accounted for $4.3 billion, or 15.2 percent, and labor costs accounted for $9.8 billion, or 34.4 percent (Tables 2, 5).

In the second quarter, passenger airlines collected from domestic operations a total of $930 million in baggage fees, 2.7 percent of total operating revenue, and $481 million from reservation change fees, 1.4 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 $613 million in the second quarter of 2017 from their international operations, up from $86 million in the first quarter and down from $1.3 billion in the second 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 10th consecutive quarter.

In addition to the after-tax net profit of $613 million based on net income reports, the scheduled service passenger airlines reported a $1.2 billion pre-tax operating profit in the second quarter of 2017 from their international operations, up from $277 million in the first quarter and down from $1.8 billion in the second quarter of 2016. The airlines reported a pre-tax operating profit from international operations - as a group - for the 21st consecutive quarter (Table 3).

Total operating revenue from international operations for all U.S. passenger airlines in the April-June second-quarter of 2017 was $11.2 billion. Airlines collected $9.4 billion from fares, 83.6 percent of total second-quarter operating revenue (Tables 3, 6).

Total operating expenses from international operations for all passenger airlines in the second-quarter of 2017 were $10.0 billion, of which fuel costs accounted for $2.1 billion, or 21.3 percent, and labor costs accounted for $3.8 billion, or 38.2 percent (Tables 3, 6).

In the second quarter, passenger airlines collected from international operations a total of $247 million in baggage fees, 2.2 percent of total operating revenue, and $257 million from reservation change fees, 2.3 percent of total operating revenue (Tables 3, 6).

2nd Quarter Margins for All Scheduled Passenger Airlines

All U.S. scheduled passenger airlines reported a combined net income margin of 10.1 percent in the second quarter of 2017, down from a net margin of 10.7 percent in the second 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 16.7 percent in the second quarter of 2017, down from 18.1 percent in the second 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 June 30, 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 Aug. 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 third-quarter 2017 data on Dec. 11.