Airlines Report Improved Operating Margins

The network, low-cost and regional airline groups all reported improved operating margins in the second quarter of 2009, the Bureau of Transportation Statistics (BTS) of the U.S. DOT reported Monday in a release of preliminary data.

BTS, a part of the Research and Innovative Technology Administration, reported that network carriers as a group posted their smallest operating margin loss for any quarter since September 2007 while the low-cost and regional groups reported profit margins.  The low-cost group's profit margin of 7.0 percent was its largest since the second quarter of 2007 while the regionals' profit margin of 7.2 percent was its largest since the fourth quarter of 2006.
 
The low-cost and regional performance offset the network loss margin, resulting in 21 airlines surveyed achieving their first overall profitable operating margin since the third quarter of 2007. Only five of the 21 reported loss margins while the remaining 16 reported profit margins.

The network group has reported loss margins for seven consecutive quarters, but the -0.5 loss margin in the most recent quarter was the smallest.  In the April-to-June period, three of the seven network airlines, the group with most of the industry's largest carriers, reported loss margins. American Airlines reported the largest loss margin of the group, followed by Continental Airlines and Delta Air Lines.
 
Low-cost carrier Virgin America and regional carrier ExpressJet Airlines were the only other airlines to report loss margins in the second quarter

FMI: www.bts.gov/press_releases/2009/bts044_09/html/bts044_09.html