PDF | Excel

Note: Baggage fee numbers in the text, Table 1 and Table 4 were revised on June 22, 2016. Numbers in the category of other revenue were also revised.

U.S. scheduled passenger airlines reported an after-tax net profit of $3.1 billion in the first quarter of 2016, down from $7.7 billion in the fourth quarter of 2015 and virtually unchanged from $3.1 billion in the first quarter of 2015, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today (Table 1).

U.S. Scheduled Service Passenger Airlines Quarterly Net Income

Table Version | Excel

The 25 U.S. scheduled service passenger airlines reported an after-tax net profit as a group for the 10th consecutive quarter.

In addition to the after-tax net profit of $3.1 billion based on net income reports, the scheduled service passenger airlines reported a $5.6 billion pre-tax operating profit in the first quarter of 2016, down from $5.9 billion in the fourth quarter of 2015 and up from $5.1 billion in the first quarter of 2015. The airlines reported a pre-tax operating profit - as a group - for the 19th consecutive quarter (Tables 1, 3).

Net income and operating profit or loss are two different measures of airline financial performance. Net income or loss may include 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 January-March first-quarter of 2016 was $39.0 billion. Airlines collected $28.9 billion from fares, 74.2 percent of total first-quarter operating revenue (Table 4).

Total operating expenses for all passenger airlines in the first-quarter of 2016 were $33.4 billion, of which fuel costs accounted for $5.4 billion, or 16.1 percent, and labor costs accounted for $11.3 billion, or 34.0 percent (Table 4).

In the first quarter, passenger airlines collected a total of $975 million in baggage fees, 2.5 percent of total operating revenue, and $745 million from reservation change fees, 1.9 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 historic data.

Totals for Scheduled Passenger Airlines with the Highest Operating Revenue

As a group, the 10 U.S. scheduled passenger airlines with the highest operating revenue in the first quarter of 2016 reported an after-tax net profit of $3.1 billion in the first quarter of 2016, down from a profit of $7.4 billion in the fourth quarter of 2015 and up from a profit of $2.9 billion in the first quarter of 2015 (Table 2). These airlines carried 82.5 percent of U.S. airlines’ scheduled service passengers in the first quarter and accounted for 99.9 percent of the scheduled passenger airline after-tax net profit (Table 2). 

In addition to the after-tax net income reports, the 10 airlines reported a $5.4 billion pre-tax operating profit in the first quarter of 2016, down from a profit of $5.8 billion in the fourth quarter and up from a $4.9 billion pre-tax operating profit in the first quarter of 2015 (Table 3).

Margins for All Scheduled Passenger Airlines

All U.S. scheduled passenger airlines reported a combined net income margin of 7.8 percent in the first quarter of 2016, down from a net margin of 7.9 percent in the first quarter of 2015. Net margin is the net income or loss as a percentage of operating revenue. These airlines reported an operating profit margin of 14.4 percent in the first quarter of 2016, up from 13.0 percent in the first quarter of 2015. 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 March 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 May 10. 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 second-quarter 2016 data on Sept. 19.

Table 1. Quarterly U.S. Scheduled Service Passenger Airlines Financial Reports

Reports from 25 airlines in 1Q 2016

(Millions of dollars)

Note: 1Q 2016 baggage fee numbers in this table were revised on June 22, 2016.

Source: Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6

* Passenger airline operating revenue includes two other categories. 1) Transport-related is revenue from services which grow from and are incidental to the air transportation services performed by the air carrier. Examples are in-flight onboard sales (food, liquor, pillows, etc), code share revenues, revenues from associated businesses (aircraft maintenance, fuel sales, restaurants, vending machines, etc). 2) Miscellaneous operating revenue includes pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees. See the P1.2 database http://www.transtats.bts.gov/Fields.asp?Table_ID=295.

Note: 4Q2014 Reservation Change fee numbers were revised subsequent to public release at 11 a.m. on May 2, 2016.

Table 2. Quarterly Large Airline Systemwide (Domestic + International) Net Income

Ranked by 1Q 2016 Operating Revenue

(millions of dollars)

Source: Bureau of Transportation Statistics, Form 41; Schedule P1.2

Note: American and US Airways began combined reporting with 3Q 2015 data. American’s numbers in this table include US Airways’ numbers reported separately from January through June 2015. For US Airways report, see Schedule P1.2 http://www.transtats.bts.gov/Fields.asp?Table_ID=295.

Table 3. Quarterly Large Airline Systemwide (Domestic + International) Operating Profit/Loss

Ranked by 1Q 2016 Operating Revenue

(millions of dollars)

Source: Bureau of Transportation Statistics, Form 41; Schedule P1.2

Note: American and US Airways began combined reporting with 3Q 2015 data. American’s numbers in this table include US Airways’ numbers reported separately from January through June 2015. For US Airways report, see Schedule P1.2 http://www.transtats.bts.gov/Fields.asp?Table_ID=295.

Table 4. Quarterly U.S. Scheduled Passenger Airlines Revenue, Expenses and Profits

Reports from 25 airlines in 1Q 2016

(millions of dollars)

Note: 1Q2016 baggage fee numbers and numbers in the category of other revenue in this table were revised on June 22, 2016.

Source: Bureau of Transportation Statistics, Form 41; Schedules P1.2 and P6

* Transport-Related is revenue/expenses from services which grow from and are incidental to the air transportation services performed by the air carrier. Examples are in-flight onboard sales (food, liquor, pillows, etc), code share revenues, revenues and expenses from associated businesses (aircraft maintenance, fuel sales, restaurants, vending machines, etc).

** Other revenue includes miscellaneous operating revenue (including pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees) and public service revenues subsidy.

*** Other expense includes purchase of materials such as passenger food and other materials; and purchase of services such as advertising, communication, insurance, outside flight equipment maintenance, traffic commissions and other services.

**** Operating margin is the operating profit or loss as a percentage of operating revenue

# Nonoperating Income and Expense includes interest on long-term debt and capital leases, other interest expense, foreign exchange gains and losses, capital gains and losses and other income and expenses.

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

Note: 4Q2014 Reservation Change fee numbers were revised subsequent to public release at 11 a.m. on May 2, 2016.