US airlines made $4.6 billion less in the first quarter of 2016 than the previous quarter, according to the Department of Transportation’s Bureau of Transportation Statistics.
Passenger airlines reported a net profit of $3.1 billion in the first quarter of 2016, down from $7.7 billion in the fourth quarter of 2015. But profits are flat on Q1 2015. Total operating revenue from January to March was $39 billion, with 74% coming from fares.
Operating expenses during that time frame were $33.4 billion, with fuel costs accounting for $5.4 billion, or 16.1%. Carriers collected nearly $947 million in baggage fees in the first quarter of 2016, up $100 million from the same time period last year. They also took in $745 million in reservation change or cancellation fees in Q1 2016.
Capitol Hill is starting to pressure airlines to halt baggage fees this summer – This is something that they cannot do.