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 preliminary data.
BTS reported that the largest airlines carried 80.4 percent of U.S. airlines’ scheduled service passengers in the second quarter of 2013. 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.
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.