Airlines in United States collectively reported over $1 billion after-tax net loss during the Q1 of 2023 and a pre-tax operating gain of $32 million. The overall result is nearly $4 billion better than last year's first quarter, when the after-tax net loss amounted to $5.1 billion. The US Department of Transportation (DOT) compiled data from 26 scheduled US passenger airlines.
According to the DOT, total operating revenue for the first quarter 2023 was $52.9 billion with total for fares amounting to $39.5 billion, or 74.6%, compared to 68.9% in 1Q 2022. The baggage fee totalled $1.7 billion, representing 3.3%, compared to 3.7% in 1Q 2022.
In Q4 2022, the airlines had a gain of $2.1 billion. During the other two quarters of 2022, airlines experienced after-tax net income gains, with $2.2 billion in Q2 and $2.4 billion in Q3, according to the DOT, mostly die to travel demand during 2022 summer after the ease of pandemic restrictions in many regions.
The airlines also recorded $52.9 billion worth of operating expenses during Q1 2023. The share of the total operating expenses during the quarter includes fuel and labor. Fuel cost $12 billion, accounting for 22.6%. It was more than the same period last year when the cost was 19.5% of operating expenses. Labor resulted in $17.7 billion, or 33.4%, compared to 34.2% in Q1 2022.
In domestic operations, operating revenue reached $40.4 billion, and operating expenses amounted to $40.8 billion. International operating income was $12.5 billion, with operating expenses totaling $12.1 billion.