21-Dec-2010 12:50 PM

US network carriers report highest profit margin in 3Q2010

US Bureau of Transportation Statistics (BTS) released (20-Dec-2010) its Airlines Financial Data for the three months ended 30-Sep-2010*, which showed US network carriers and low-cost carriers reported profits in 3Q2010. Network carriers reported their highest profit margin and LCCs’ profit margins were the group’s second highest since the BTS commenced issuing quarterly airline financial results in 2002. According to BTS, US airlines collected USD646 million in ancillary** revenues, excluding USD906 million in baggage fees and USD590 million from reservation change fees. Details include:

  • Operating revenue:
    • Network: USD28,239 million, n/a year-on-year;
    • LCC: USD5801 million;
    • Total ancillary: USD2143 million, +9.7%;
    • Baggage fees: USD906.4 million, +22.5%;
    • Reservation change fees: USD5950.4 million, -3.8%;
  • Operating costs:  
      • Network: USD25,272 million, n/a;
      • LCC: USD5166 million;
    • Fuel:
      • Network:  USD6316 million;
      • LCC: USD1691 million;
  • Operating profit:
    • Network: USD2967 million;
    • LCC: USD635 million;
  • Passenger yield:
    • Network: USD 13.0 cents, +16.1%;
    • LCC: USD 12.7 cents, +11.4%;
  • Revenue per ASM:
    • Network: USD 15.8 cents, +13.7%;
    • LCC: USD 11.7 cents, +12.5%;
  • Cost per ASM:
    • Network: USD 14.2 cents, +3.6%;
    • LCC: USD 10.4 cents, +5.1%. [more]

*Excludes regional airline results due to incomplete data.
**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.

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