BTS 59-14
Monday, December 15, 2014
Contact: Dave Smallen
Tel: 202-366-5568

          BTS Releases 3^rd Quarter 2014 Airline Financial Data 

U.S. scheduled passenger airlines reported a net profit of $3.1 billion in the third quarter of 2014, down from $3.6 billion in the second quarter and virtually unchanged from $3.1 billion in the third quarter of 2013, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today.  

The 27 U.S. scheduled service airlines reported an after-tax net profit as a group for the sixth consecutive quarter. 

In addition to the after-tax net profit based on net income reports, the scheduled service passenger airlines reported a $5.5 billion pre-tax operating profit in the third quarter of 2014, virtually unchanged from $5.5 billion in the second quarter and up from $4.7 billion in the third quarter of 2013. The airlines reported a pre-tax operating profit - as a group - for the 15th consecutive quarter. 

Net income or loss, and operating profit or loss, are two different measures of airline financial performance. Net income or loss may include 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 2014 was $45.3 billion. Airlines collected $34.3 billion from fares, 75.8 percent of total third-quarter operating revenue. 

Total operating expenses for all passenger airlines in the third-quarter of 2014 were $39.8 billion, of which fuel costs accounted for $11.4 billion, or 28.7 percent, and labor costs accounted for $10.5 billion, or 26.3 percent. 

In the third quarter, passenger airlines collected a total of $960 million in baggage fees, 2.1 percent of total operating revenue, and $759 million from reservation change fees, 1.7 percent of total operating revenue. Fees are included for calculations of net income, operating revenue and operating profit or loss. 

Baggage fees and reservation change fees are the only ancillary fees paid by passengers that are reported to BTS as separate items. Other fees, such as revenue from seating assignments and on-board sales of food, beverages, pillows, blankets, and entertainment are combined in different categories and cannot be identified separately. 

See BTS Airline Financials Release for summary tables and additional data. See airline financial data press releases and the airline financial databases for historic data. 

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