WASHINGTON - United States scheduled passenger airlines reported a net profit of $3.1 billion in the third quarter of 2014, down from $3.6 billion in the second quarter and virtually unchanged from $3.1 billion in the third quarter of 2013, the U.S. Department of Transportation's (DoT) Bureau of Transportation Statistics (BTS) reported.

The 27 U.S. scheduled service airlines reported an after-tax net profit as a group for the sixth consecutive quarter.

In addition to the after-tax net profit based on net income reports, the scheduled service passenger airlines reported a $5.5 billion pre-tax operating profit in the third quarter of 2014, virtually unchanged from $5.5 billion in the second quarter and up from $4.7 billion in the third quarter of 2013. The airlines reported a pre-tax operating profit - as a group - for the 15th consecutive quarter.

Net income or loss, 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 July-September third-quarter of 2014 was $45.3 billion. Airlines collected $34.3 billion from fares, 75.8 percent of total third-quarter operating revenue.

Total operating expenses for all passenger airlines in the third-quarter of 2014 were $39.8 billion, of which fuel costs accounted for $11.4 billion, or 28.7 percent, and labor costs accounted for $10.5 billion, or 26.3 percent. In the third quarter, passenger airlines collected a total of $960 million in baggage fees, 2.1 percent of total operating revenue, and $759 million from reservation change fees, 1.7 percent of total operating revenue. Fees are included for calculations of net income, operating revenue and operating profit or loss

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.

As a group, the top 10 U.S. scheduled passenger airlines, based on operating revenue, reported an after-tax net profit of $3.0 billion in the third quarter of 2014, down from a profit of $3.5 billion in the second quarter and virtually unchanged from a profit of $3.0 billion in the third quarter of 2013. These airlines carried 79.0 percent of U.S. airlines' scheduled service passengers in the third quarter and accounted for 95.3 percent of the scheduled passenger airline after-tax net profit.

In addition to the after-tax net income reports, the 10 top airlines reported a $5.2 billion pre-tax operating profit in the third quarter of 2014, virtually unchanged from a profit of $5.2 billion in the second quarter and up from a $4.5 billion pre-tax operating profit in the third quarter of 2013.

Source: U.S. DoD
Associated URL: http://www.rita.dot.gov/bts/press_releases/bts059_14
Author: U.S. DoD