Data Released By DOT Bureau Of Transportation Statistics

U.S. scheduled passenger airlines reported an after-tax net profit of $15.5 billion in 2017, up from $14.0 billion in 2016, according to data released by the DOT Bureau of Transportation Statistics.

The 23 U.S. scheduled service passenger airlines reported an after-tax net profit as a group for the fifth consecutive year based on net income reports, and an after-tax net profit as a group for the fifth consecutive year based on net income reports.

The airlines also reported a $21.4 billion pre-tax operating profit in 2017, down from $25.4 billion in 2016. The airlines reported a pre-tax operating profit as a group for the ninth consecutive year.

Net profit or loss and operating profit or loss are two different measures of airline financial performance. Net profit or loss includes 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 2017 operating revenue was $175.3 billion. The airlines collected $130.5 billion from fares, 74.4 percent of total operating revenue.

Total 2017 operating expenses were $153.9 billion, of which fuel costs accounted for $26.2 billion, or 17.1 percent, and labor costs accounted for $53.6 billion, or 34.8 percent.

The airlines collected $4.6 billion in baggage fees, 2.6 percent of total operating revenue, and $2.9 billion from reservation change fees, 1.6 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.

(Source: BTS news release)

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