25 U.S. passenger airlines reported $7.2bn pre-tax Q3 operating profitStaff Writer | December 13, 2016
The 25 U.S. scheduled service passenger airlines reported an after-tax net profit as a group for the 14th consecutive quarter.
Air traffic The 14th consecutive quarter
The airlines reported a pre-tax operating profit - as a group - for the 22nd consecutive quarter.
Net profit or loss and operating profit or loss are two different measures of airline financial performance.
Net profit or loss includes 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.
Total operating revenue for all U.S. passenger airlines in the July-September third-quarter of 2016 was $44.4 billion. Airlines collected $33.3 billion from fares, 75.1 percent of total third-quarter operating revenue.
Total operating expenses for all passenger airlines in the third-quarter of 2016 were $37.2 billion, of which fuel costs accounted for $6.1 billion, or 16.4 percent, and labor costs accounted for $12.7 billion, or 34.3 percent.
In the third quarter, passenger airlines collected a total of $1.1 billion in baggage fees, 2.5 percent of total operating revenue, and $731 million from reservation change fees, 1.7 percent of total operating revenue. ■