U.S. scheduled passenger airlines profit falls from $24.8bn to $13.5bn
The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported.
In addition to the after-tax net profit of $13.5 billion based on net income reports, the scheduled service passenger airlines reported a $24.8 billion pre-tax operating profit in 2016, down from $28 billion in 2015.
The airlines reported a pre-tax operating profit - as a group - for the eighth consecutive year.
Total operating revenue for the 25 U.S. scheduled passenger airlines in 2016 was $168.2 billion. Airlines collected $125.2 billion from fares, 74.5 percent of total 2016 operating revenue.
Total operating expenses for all passenger airlines in 2016 were $143.3 billion, of which fuel costs accounted for $22.4 billion, or 15.6 percent, and labor costs accounted for $49.7 billion, or 34.7 percent.
In 2016, passenger airlines collected a total of $4.2 billion in baggage fees, 2.5 percent of total operating revenue, and $2.9 billion 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. ■