US airlines net losses were at $1.6bn after tax in the first quarter, falling further from its net loss of $1.2bn a year prior in the same period, according to consolidated first quarter reports filed to the Bureau of Transportation Statistics (BTS).
In addition, US airlines' pre-tax operating results swung to a loss of $290 million, compared to an operating profit of $32 million a year prior.
Total first quarter operating revenues were $56bn in the first quarter, with total operating expenses at $56.3bn. 22.6% of the expenses comprised of fuel costs, totalling $11.3bn, compared to 22.6% in the first quarter last year. Additionally, labour comprised of 35.8% of expenses, compared to 33.4% a year prior, at $20bn. It signals the growing weight of labour costs while fuel prices have leveraged.
However, US airlines have been improving their domestic figures. They had trimmed their net losses domestically to $0.9bn in the first financial period of the year, down from $1.3bn year-on-year (YoY). Domestic operating profits were a consolidated $117 million in the first quarter of the year, swinging from last year's loss of $393 million in the same financial period.
From the BTS statistics, it is apparent that it is internationally where US airlines are faltering. Their after-tax international net profits swung from a $43 million gain in the first quarter last year to a net loss of $783 million a year later.
In previous quarters, domestic net profits had outweighed international profits, except for third quarter results, reflecting a desire to travel overseas during the summer months.
