BTS Indicators Report Shows 10-Year Low in Air Carrier Returns

Contact BTS 9-02 David Smallen 202-366-5568

Tuesday, May 7, 2002 -- The U.S. Department of Transportation's Bureau of Transportation Statistics today released its monthly Transportation Indicators report showing the nation's air carriers lost more than $7 billion in 2001 on year-end assets of $107 billion - a return on assets of minus 7 percent that is the lowest in the 10 years tracked by BTS and an 8 point drop from the return in 2000.

The previous low of minus 5 percent was set in June 1993 when the airlines lost $2.4 billion over a 12-month period.

Air carrier operating revenues fell 33 percent from $21.5 billion in the fourth quarter of 2000 to $14.4 billion in the fourth quarter of 2001. Operating expenses fell 14 percent from $21.6 billion in the fourth quarter of 2000 to $18.5 billion in the fourth quarter of last year. (These statistics and the historical data used for comparison exclude American Airlines, Federal Express, Southwest Airlines, and Trans World Airlines who had not yet filed fourth quarter 2001 data at the time of the report.)

Dr. Ashish Sen, BTS Director, said, "Transportation Indicators provides information that is updated monthly on the transportation system's operations since Sept. 11. BTS will continue to monitor the nation's transportation system through this monthly report."

The BTS Transportation Indicators report is a monthly update of critical transportation information that details the impact of transportation on the nation's economy and society.

Transportation Indicators provides information on more than 300 trends in the areas of safety, mobility, economic growth, the human and natural environment, and national security. The monthly report, which is available at www.bts.gov, provides information to address specific transportation issues and to assist in the effort led by BTS to make transportation information more accurate, reliable and timely. Updated reports will be available on the BTS website at the end of every month.

Other trends highlighted in this month's report are:

• Personal spending on motor vehicles and parts rose 16 percent from the third quarter of 2001 to the fourth quarter.
• Producer prices for crude petroleum and for petroleum products both fell 16 percent in the year ending in March, for a cumulative decline of 29 percent in crude petroleum and 20 percent in petroleum products in two years, but prices have been rising since January.
• Producer prices for motor freight transportation rose 0.5 percent in March from March 2001, the slowest 12-month increase in the nine years tracked by Transportation Indicators.
• Prices for highway and street construction dropped 4 percent in March from March 2001, the third sharpest 12-month drop in the 10 years tracked by Transportation Indicators.
• Earnings of passenger transportation arrangers (travel agencies, tour operators, and other establishments primarily engaged in arranging passenger transportation, such as ticket offices not operated by transportation companies, for railroads, buses, ships, and airlines) were up 8 percent in real terms in the 12 months ending in February. This is an acceleration of a trend in which these wages increased 3 percent per year (in real terms) since 1992, far more, on average, than any other transportation occupation.
• Railroad labor productivity expressed in train-miles per employee hour was up 5 percent in January compared to January 2001, but down from December.
• Manufacturers' new orders for transportation equipment jumped 10 percent between January and February in seasonally adjusted terms, while new orders for all manufacturing were essentially unchanged.
• World crude oil prices rose 21 percent between the week ending March 8 and the week ending April 5.
• Jet fuel prices for scheduled and nonscheduled airlines in February were both down more than 25 percent from their February 2001 prices.
• International jet fuel prices were down 12 percent for nonscheduled airlines and 28 percent for scheduled airlines in February compared to February 2001.
• The value of U.S.-Canada trade carried by trucks was 9 percent lower in January than in January 2001; the value of trade moved by rail was down 7 percent, and by pipeline, down 49 percent. The value of U.S.-Mexico truck trade was down 6 percent and rail trade was down 3 percent from January 2001. U.S.-Mexico pipeline trade increased.
• The U.S. trade deficit in international passenger fares fell 46 percent from the third quarter of 2001 to the fourth quarter.
• Transportation energy consumption was 6 percent lower in December than in December 2000.
• Net petroleum imports decreased 8 percent in February compared to February 2001, while U.S. petroleum production increased 5 percent during the same time period.

Continual updating of information on trends will help in developing forecasts for the future, both within the department and outside. The monthly report will also help transportation decision-makers spot changes that might require rapid action.

New indicators this month:

U.S. Balance of Trade in Goods and Services

U.S. Balance of Trade with Canada and Mexico

U.S. Balance of Trade with Asia

U.S. Balance of Trade in Transportation Goods and Services

International Space Launches