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Largest Airlines Report Larger Net Profit In 2nd-Quarter Of 2013
 
By Daniel Baxter
 

October 4, 2013 - The largest scheduled passenger airlines reported a net profit of $2.1 billion in the second quarter of 2013, an increase from a profit of $700 million in the second quarter of 2012, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported in a release of preliminary data. 

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that the largest airlines carried 80.4 percent of U.S. airlines’ scheduled service passengers in the second quarter of 2013.  See Airline Financial Data Press Releases for historic data. 

In addition to the Net Income reports, the largest airlines reported a 9.0 percent pre-tax operating profit margin in the second quarter of 2013, up from a 6.0 percent profit margin in the second quarter of 2012.  

 

BTS is reporting numbers for Net Income or Loss as well as for Operating Profit or Loss. These 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. 

The largest airlines achieved an operating profit margin - as a group - in each of the last nine quarters. Together, they posted a pre-tax profit of $3.5 billion in the second quarter in contrast to a net profit after taxes of $2.1 billion. 

Total revenue for all passenger airlines in the second-quarter of 2013 was $41.2 billion. All U.S. passenger airlines collected a total of $871 million in baggage fees and $719 million from reservation change fees from April through June 2013. 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. 

Total operating expenses for all passenger airlines in the second-quarter of 2013 were $37.5 billion, of which $10.9 billion, or 28.9 percent, was used for fuel costs. See the database for expense and fuel data. 

Large Airline System (Domestic + International) Quarterly Net Income

Ranked by 2Q 2013 System Passengers (Net income in millions of dollars) 

2Q 2013 Passenger Rank

Airline

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

1

Delta

-120.4

1,169.9

-20.4

6.8

688.7

2

Southwest*

228.3

16.1

78.3

58.5

224.0

3

United

369.6

-25.1

-574.3

-361.5

484.0

4

American

-263.7

-256.9

270.8

-252.8

227.8

5

US Airways

321.5

263.3

46.7

69.0

325.0

6

ExpressJet

-1.8

-0.4

-3.5

-15.4

-2.6

7

JetBlue

52.5

44.3

0.8

13.8

36.4

8

SkyWest

18.2

22.8

19.0

14.4

24.7

9

Alaska

66.0

160.7

38.1

33.9

102.2

11*

American Eagle

30.0

15.7

-88.3

0.6

12.5

 

10-Carrier Total

700.2

1,410.4

-232.8

-432.7

2,122.6

Large Airline System (Domestic + International) Quarterly Operating Profit/Loss Margin (In Percent) Ranked by 2Q 2013 System Passengers (Operating Profit/Loss as Percent of Total Operating Revenue)                                 

2Q 2013 Passenger Rank

Airline

2Q 2012 (%)

3Q 2012 (%)

4Q 2012 (%)

1Q 2013 (%)

2Q 2013 (%)

2nd Quarter 2013 Operating Profit/Loss $(Millions)

1

Delta

3.8

14.6

5.4

3.8

9.8

949

2

Southwest*

10.0

1.2

2.2

1.7

9.3

433

3

United

5.9

2.1

-5.1

-3.0

7.7

771

4

American

1.9

0.4

-0.1

0.8

7.4

478

5

US Airways

10.3

7.3

3.3

3.0

12.1

477

6

ExpressJet

0.9

1.1

0.0

-5.7

0.3

2

7

JetBlue

9.4

8.6

3.8

4.5

7.0

93

8

SkyWest

8.2

10.3

9.4

7.7

11.1

51

9

Alaska

15.8

18.7

7.8

7.3

15.1

189

11*

American Eagle

9.1

8.7

5.7

3.0

4.2

13

 

10-Carrier Total

6.0

6.4

1.2

1.3

9.0

 

 
 
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