A4A: US carriers' earnings fell modestly in 2016 due to lower fares, higher operating expenses

Airlines for America (A4A) stated (20-Mar-2017) the combined pre-tax earnings of 10 US carriers fell modestly in 2016 year-on-year due to lower fares and higher operating expenses. The carriers include Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, United Airlines and Virgin America. Collective reported pre-tax earnings for 2016 totaled USD22.3 billion on USD157.1 billion in operating revenues, resulting in a pre-tax profit margin of 14.2%. Operating revenues fell 1% as 5.2% lower airfare offset the 3.1% growth in passenger traffic. Operating expenses rose 0.9% as airlines continued to invest in their workforce and take on additional labour costs, which grew 9.3% year-on-year. Lower fuel costs, which were down 17% year-over-year in 2016, were offset by the increases in all other cost categories. [more - original PR]