US airlines report highest operating margin since 2002

US Bureau of Statistics (BTS) released (20-Sep-2010) its Airline Financial Data for the three months ended 30-Jun-2010, which showed the network airline group reported its highest second-quarter net margin since 2Q2007 while the combined profit margin for the network, LCC and regional carrier groups was the highest since the BTS commenced issuing quarterly airline financial data in 2002. According to BTS, US airlines collected USD618 million in ancillary revenues, excluding USD893 million in baggage fees and USD594 million in reservation change fees. Details are as follows:

• Operating revenue: USD34,276 million, n/a;
  • Network: USD26,821 million;
  • LCC: USD5,643 million;
  • Regional: USD1,812 million;
  • Total ancillary*: USD2,105 million, +15.8%;
    • • Delta**: USD681.6 million, +67.5%;
      • American Airlines: USD292.3 million, +18.6%;
      • US Airways: USD255.6 million, +12.0%;
      • Southwest Airlines: USD201.7 million, +35.9%;
      • United Airlines: USD179.1 million, +13.0%;
      • Continental Airlines; USD160.7 million, +18.2%;
      • AirTran: USD65.5 million, -0.3%;
      • jetBlue: USD47.7 million, -1.6%;
      • Alaska Airlines: USD46.3 million, +61.3%;
      • Spirit Airlines: USD41.9 million, +13.9%;
    • Baggage fees: USD892.8 million, +33.3%;
    • Reservation cancellation fees: USD594.0 million, -2.1%;
• Operating costs: USD31,188 million, n/a;
  • Network: USD24,400;
  • LCC: USD5,086 million;
  • Regional: USD1,702 million;
• Operating profit: USD3,088 million, n/a;
  • Network: USD2,421 million;
  • LCC: USD557 million;
  • Regional: USD110 million;
• Revenue per ASM: USD 14.8 cents, +16.5%;
  • Network: USD 15.9 cents, +18.7%;
  • LCC: USD 11.6 cents, +16.0%;
  • Regional: USD 12.5 cents, -6.7%;
• Cost per ASM: USD 13.4 cents, +6.3%;
  • Network: USD 14.5 cents, +7.4%;
  • LCC: USD 10.5 cents, +12.9%;
  • Regional: USD 11.4 cents, -8.1%. [more]

*Includes baggage fees, reservation change fees and miscellaneous operating revenue, including pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees. Revenue from seating assignments and on-board sales of food, drink, pillows, blankets, entertainment, or any other ancillary items are reported as transport-related revenue and cannot be identified separately
** Delta commenced reporting combined figures with Northwest Airlines from 1Q2010