U.S. Airlines’ Net Profit in 3rd Quarter 2021 Nearly Triples 2nd Quarter

BTS 73-21

Second consecutive quarterly profit during COVID-19 pandemic

U.S. scheduled passenger airlines reported a third-quarter 2021 after-tax net profit of $2.7 billion and a pre-tax operating loss of $187 million.

The third-quarter positive after-tax net profit is the second consecutive quarterly profit and the second quarterly profit since the onset of the COVID-19 pandemic. The airlines increased their second-quarter profit ($1.0 billion) by 170%. The third-quarter pre-tax operating loss of $187 million was also improved from the second-quarter loss of $3.6 billion.

U.S. airline financial reports are filed quarterly with the Bureau of Transportation Statistics (BTS). See the tables that accompany this release on the BTS website for additional third-quarter 2021 financial results (Tables 1-6).

Payroll protection payments received by airlines are included as net income. Payroll protection payments used for salaries are included as labor expenses.

Systemwide operations, includes 24 U.S. airlines:

After-tax net profit/loss (net income)

• $2.7 billion profit in 3Q 2021
• Compared to $1.0 billion profit in 2Q 2021
• Compared to $11.8 billion loss in 3Q 2020
• Compared to $4.6 billion profit in pre-pandemic 3Q 2019

Pre-tax operating profit/loss

• $187 million loss in 3Q 2021
• Compared to $3.6 billion loss in 2Q 2021
• Compared to $15.9 billion loss in 3Q 2020
• Compared to $6.4 billion profit in pre-pandemic 3Q 2019

Total 3Q 2021 operating revenue: $39.4 billion
      Share of total 3Q 2021 operating revenue:

• Fares: $27.0 billion, 68.6%, compared to $8.2 billion in 3Q 2020
• Baggage fees: $1.6 billion, 4.0%, compared to $601.3 million in 3Q 2020
• Reservation change fees: $233.6 million, 0.6%, compared to $61.9 million in 3Q 2020

Fees above are included for calculations of net income, operating revenue and operating profit or loss.

Total 3Q 2021 operating expenses: $39.6 billion
      Share of total 3Q 2021 operating expenses:

• Fuel: $6.7 billion, 16.8%, compared to 2.1 billion in 3Q 2020
• Labor: $13.9 billion, 35.2%, compared to 12.5 billion in 3Q 2020

Domestic operations, includes 24 U.S. airlines:

After-tax domestic net profit/loss (net income)

• $2.6 billion profit in 3Q 2021
• Compared to $1.8 billion profit in 2Q 2021
• Compared to $9.5 billion loss in 3Q 2020
• Compared to $3.2 billion profit in pre-pandemic 3Q 2019

Pre-tax domestic operating profit/loss

• $81 million profit in 3Q 2021
• Compared to $2.1 billion loss in 2Q 2021
• Compared to $13.7 billion loss in 3Q 2020
• Compared to $4.7 billion profit in pre-pandemic 3Q 2019

3Q 2021 domestic operating revenue: $32.4 billion
      Share of total 3Q 2021 domestic operating revenue:

• Fares: $22.0 billion, 67.8%, compared to 7.1 billion in 3Q 2020
• Baggage fees: $1.3 billion, 3.9%, compared to 520.7 million in 3Q 2020
• Reservation change fees: $205.1 million, 0.6%, compared to 53.3 million in 3Q 2020

3Q 2021 domestic operating expenses: $32.3 billion
    Share of total 3Q 2021 domestic operating expenses:

• •    Fuel: $5.1 billion, 15.7%, compared to 1.6 billion in 3Q 2020
• •    Labor: $11.2 billion, 34.7%, compared to 10.5 billion in 3Q 2020

International operations, includes 19 U.S. airlines:

 After-tax international net profit/loss (net income)

• $148.7 million profit in 3Q 2021
• Compared to $773.8 billion loss in 2Q 2021
• Compared to $2.3 billion loss in 3Q 2020
• Compared to $1.3 billion profit in pre-pandemic 3Q 2019

Pre-tax international operating profit/loss

• $267.6 million loss in 3Q 2021
• Compared to $1.5 billion loss in 2Q 2021
• Compared to $2.3 billion loss in 3Q 2020
• Compared to $1.7 billion profit in pre-pandemic 3Q 2019

3Q 2021 international operating revenue: $7.0 billion
      Share of total 3Q 2021 international operating revenue:

• Fares: $5.1 billion, 72.5%, compared to 1.1 billion in 3Q 2020
• Baggage fees: $302.6 million, 4.3%, compared to 80.6 million in 3Q 2020
• Reservation change fees: $28.5 million, 0.4%, compared to 8.6 million in 3Q 2020

3Q 2021 international operating expenses: $7.3 billion
    Share of total 3Q 2021 international operating expenses:

• Fuel: $1.6 billion, 21.7%, compared to 452.3 million in 3Q 2020
• Labor: $2.7 billion, 37.3%, compared to 1.9 billion in 3Q 2020

3rd Quarter Margins

Net margin is the net income or loss as a percentage of operating revenue. Operating margin is the operating profit or loss as a percentage of operating revenue.

Systemwide:

Net income margin:

•  6.9% in 3Q 2021
• Compared to -83.8% in 3Q 2020

Operating margin:

• -0.5% in 3Q 2021
• Compared to -113.5% in 3Q 2020

Domestic

Net income margin:

• 7.9% in 3Q 2021
• Compared to -78.7% in 3Q 2020

Operating margin:

• 0.3% in 3Q 2021
• Compared to -113.9% in 3Q 2020

International

Net income margin:

• 2.1% in 3Q 2021
• Compared to -113.9% in 3Q 2020

Operating margin:

• -3.8% in 3Q 2021
• Compared to -111.1% in 3Q 2020

Reporting notes

Additional data: BTS website, see tables for operating profit/loss, operating revenue and fuel cost and consumption. See the BTS financial databases for more detailed data including numbers for individual airlines.

Filing requirement: By regulation, for the quarter ending September 30, airlines that operate at least one aircraft that is designed/certified for more than 60 seats or the capacity to carry a payload of passengers and cargo weighing more than 18,000 pounds must report financial data to BTS by November 10. The airline filings are subject to a process of quality assurance and data validations before release to the public.

Data updates: 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 fourth-quarter 2021 data on March 7, 2022.