BTS Releases First-Quarter 2003 Airline Financial Data; Many Passenger Airlines' Domestic Operations Below Break-Even

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Contact BTS 12-03 Dave Smallen 202-366-5568

Friday, June 27, 2003 -- All but five of the large, major and selected low-cost U.S. passenger airlines' operating ratios were below the break-even point in the first quarter of 2003, the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation reported today in a release of preliminary data.

Jet Blue, American Eagle, Air Tran, Southwest and Spirit reported positive operating ratios in the first quarter. Four of these airlines — all except Spirit — were the only ones of the selected group to report positive operating ratios in the fourth quarter of 2002.

The first-quarter financial report for ATA Airlines is not currently available. BTS will issue industry totals when the ATA numbers are available.

Operating ratio compares unit revenues to unit costs and compares the ratio to the break-even point, a ratio of 1.0, which represents a $0 profit or loss. Domestic unit revenues are calculated using total domestic operating revenues and dividing by domestic available seat miles. Domestic unit costs are calculated using total domestic operating expenses and dividing by domestic available seat miles.

Table 1: Airline Domestic Revenue-Cost Ratios Major Passenger Airlines and Other Selected Airlines Ranked by 1st Quarter 2003 Ratio (Domestic Operating Revenue/Operating Expenses per Available Seat Mile)

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(1.00=Break-even point)

Table 2. Airline Domestic Unit Revenue Major Passenger Airlines and Other Selected Airlines (Domestic Operating Revenue per Available Seat Mile in cents)

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Table 3. Airline Domestic Unit Costs Major Passenger Airlines and Other Selected Airlines (Domestic Operating Expenses per Available Seat Mile in cents)

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Only four of the U.S. major passenger airlines and other selected passenger airlines reported a first-quarter domestic yield that was higher than the yield in the first quarter of 2002. The four airlines are Delta, Continental, Southwest and US Airways. Domestic passenger revenue yields are calculated using total domestic passenger revenues and dividing by domestic revenue passenger miles.

Table 4. Domestic Passenger Revenue Yield Major Passenger Airlines and Other Selected Airlines (Domestic Passenger Revenue per Revenue Passenger Mile in cents)

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Table 1-4 Source: Air Carrier Statistics: Schedule T-1, Air Carrier Financial Statistics: Schedule P-12.

Additional airline financial data can be found on the BTS website at TranStats, the Intermodal Transportation Database at http://transtats.bts.gov. Click on "aviation", then on "Air Carrier Financial Reports (Form 41 Financial Data)", then click on "Schedule P-12." Note that this data source is actually BTS Form 41 Schedule P-1.2 but the period is omitted, for technical reasons, in the TranStats data application.

Data are compiled from quarterly financial reports and monthly traffic filed with the Bureau of Transportation Statistics by commercial air carriers detailing operations and finances. Financial and traffic data are preliminary and include data received by BTS as of June 17. Data are subject to revision.

Revised fourth-quarter 2002 financial data are posted on the BTS website at http://transtats.bts.gov. BTS will release second-quarter financial data on Sept. 16.