BTS: Airlines Report Fourth Quarterly Loss Margin In A Row | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 06.15.17

Airborne 06.19.17

Airborne 06.20.17

Airborne 06.21.17

Airborne 06.22.17

Airborne 06.16.17

Airborne-Unmanned 06.20.17

Airborne-YouTube

AMA 06.15.17

Airborne 06.19.17

Airborne 06.20.17

Airborne 06.21.17

Airborne 06.22.17

Airborne 06.16.17

Airborne-Unmanned 06.20.17

XPONENTIAL Innovation Preview -- www.allthingsunmanned.com

Tue, Dec 16, 2008

BTS: Airlines Report Fourth Quarterly Loss Margin In A Row

Q3 2008 Results Are In, And They're Not Good

The six largest network airlines, as a group, reported an operating loss margin of 5.8 percent in the third quarter of 2008, the fourth consecutive quarterly loss margin since the group reported a profit margin in the third quarter of 2007, the Bureau of Transportation Statistics (BTS) of the US Department of Transportation reported Monday in a release of preliminary data.

BTS reported five of the six reporting network carriers, most of the industry's largest carriers, reported an operating loss margin in the July-to-September period Only Delta Air Lines reported an operating profit. Operating margin measures profit or loss as a percentage of the airline's total operating revenue.

Alaska Airlines, a network airline and Allegiant Airlines, a low-cost airline, requested confidentiality beginning with their second quarter 2008 financial reports. Mesa Airlines requested confidentiality for its third quarter 2008 financial report. The numbers are being withheld pending a decision on their motions.

Low-cost carrier Spirit Airlines failed to file its third quarter financial data with BTS. The failure to file was referred to the Department's Office of General Counsel for review.

The six reporting network carriers spent 36.1 percent of their operating expenses in the third quarter of 2008 on fuel, compared to 13.6 percent five years earlier in the third quarter of 2003. The six reporting network carriers spent 6.20 cents per available seat-mile (ASM) for fuel in the third quarter of 2008, up from 1.47 cents per ASM in the third quarter of 2003. Regional airlines Atlantic Southeast, Comair and American Eagle Airlines spent the most for fuel per ASM while regional airlines ExpressJet Airlines and SkyWest and low-cost airline Southwest Airlines spent the least.

The total industry collected $349.8 million in excess baggage fees in the third quarter of 2008, up from $178.2 million in the second quarter and $122.4 million in the third quarter of 2007.

The six reporting network carriers posted a loss margin of 5.8 percent in the third quarter with a combined operating loss of $1.692 billion. In the third quarter of 2007, the seven network carriers reported an operating profit margin of 8.8 percent with a combined profit of $2.387 billion.            

The top three operating profit margins were reported by regional carriers Comair, SkyWest Airlines and Atlantic Southeast Airlines. Network carriers US Airways and United Airlines and low-cost carrier AirTran Airways reported the worst operating loss margins.

Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system. Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with lower infrastructure costs and higher rates of productivity. Regional carriers provide service from small cities, using primarily regional jets to support the network carriers' hub and spoke systems.

The selected groups consist of those airlines in each group with the highest reported operating revenue in the most recent 12-month period.

FMI: Read The Full Report

Advertisement

More News

Airborne 06.21.17: A380plus??, Lycoming TBO Upgrade, Drone Racing League Premier

Also: WomenVenture, EAA Pilot Proficiency Ctr, 787-9 Order, Cardiac Drones, Cessna Ldg Gears, A320neo, Nightwarden TUAS Airbus is presenting a development study for an enhanced A38>[...]

Airborne 06.21.17: A380plus??, Lycoming TBO Upgrade, Drone Racing League Premier

Also: WomenVenture, EAA Pilot Proficiency Ctr, 787-9 Order, Cardiac Drones, Cessna Ldg Gears, A320neo, Nightwarden TUAS Airbus is presenting a development study for an enhanced A38>[...]

Airborne 06.20.17: MAKO Near 1st Flt, Proteus 1000th, Pegasus Flying Car

Also: SR-72 Details, Aero-Calendar, Spitfire Flips, Tecnam Twins, Space Tourism, Iridium NEXT, Falcon Aviation The first new product since the relocation of experimental aircraft p>[...]

AMA Drone Report 06.15.17: AMA Museum-1999 Draganflyer, FPV Fest, Drone-Betting?

Also: AMA Outreach, Drone Theft, Dumb Drone Regs--In NJ, AMA Drone Report -- Help Wanted It’s never too late to start documenting history... even when it comes to topics like>[...]

Airborne-Unmanned 06.20.17: UAS Orgs v Bad Regs, Anti-Collision, Drone Race $$

Also: Solar-Powered UAS, NK Drone, UAS Survey, Brian Wynne Interview The team at AUVSI is staying plenty busy as they and 13 other organizations authored a letter to members of Con>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC