US airlines after tax profits in the third quarter of 2024 totalled $2.1bn, according to the Bureau of Transportation Statistics (BTS). It marks an increase compared to third quarter 2023, with after tax gains totalled $1.6bn.
Pre-tax operating profits totalled $3.1bn, down slightly from $3.3bn a year prior.
Operating revenues in the quarter totalled $63bn in the quarter, comprised of $47.6bn in fares; $1.9bn in baggage fees; and $254 million in reservation change fees.
Meanwhile, operating expenses totalled $59.9bn in the quarter. Labour costs totalled $21.8bn, while fuel operating expenses totalled $11.1bn. Fuel expenses' share of total operating expenses dropped from 21.4% last year down to 18.6%. Several airlines had noted the softening fuel prices in their third quarter results, offsetting rising costs.
US airline recorded a net income margin of 3.3% in the period, compared to 2.7% in the same period last year. In addition, operating margin was 4.9%, down from 5.3% in third quarter 2023.
US airlines' domestic operations made an after tax profit of $711 million, compared to $421 million a year prior. Pre-tax domestic operating profit totalled $1.3bn in period, down marginally from $1.4bn a year prior.
Domestic operating revenues were $45.9bn, while operating expenses were $44.6bn. Labour expenses were $16.2bn, while fuel expenses for domestic operations totalled $7.6bn. Domestic net income margin was 1.5% in the period, compared to 5.3% a year prior, while operating margins for US airlines were 2.8%, down from 3.1%.
International operations for US airlines brought in an after tax profit of $1.4bn in the third quarter, up from $1.2bn last year. Pre-tax operating profit was $1.8bn, somewhat flat from last year's $1.9bn. International operations brought in revenues of $17.1bn, while operating expenses were $15.4bn. Net income margin for US airlines' international operations was 7.9%, up from 7.2% a year prior. Operating margin was 10.4%, down from 11.1% in third quarter of last year.