FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

U.S. Airlines Post 14 Straight Quarters of Profits

by Megan Hill

Jan 1, 2017
Feature

The United States’ 25 domestic-based commercial airlines with scheduled passenger service are on quite a roll lately. The U.S. Bureau of Transportation Statistics reported third-quarter numbers last month for the airlines, and for the 14th straight quarter, the group collectively posted profits. For the third quarter in 2016, the quarterly haul was $3.8 billion.

The airlines posted profits for three and a half years running. The pre-tax operating profit, as a group, also rose, for the 22nd consecutive quarter. Airlines collected $33.3 billion from fares, which totaled 75.1 percent of total third quarter operating revenue.

One contributing factor to the strong track record is lower fuel costs, once again below 20 percent of expenses. Total operating expenses for all passenger airlines in the third quarter were $37.2 billion, and fuel costs accounted for just $6.1 billion, or 16.4 percent. Labor costs came in at $12.7 billion, or 34.3 percent.

Ancillary fees also helped boost profits. In the third quarter, the airlines collected $1.1 billion in baggage fees and $731 million from reservation change fees.

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