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3rd-Quarter 2009 Airline Financial Data: Airlines Report Improved Operating Margins

BTS | 3rd-Quarter 2009 Airline Financial Data: Airlines Report Improved Operating Margins

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BTS 59-09
Dave Smallen
202-366-5568
Monday, December 14, 2009 - The network, low-cost and regional airline groups all reported improved operating margins in the third quarter of 2009 compared to the third quarter of 2008 (Table 1), the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation reported today in a release of preliminary data.

BTS, a part of the Research and Innovative Technology Administration, reported that the airline industry collected at least $2.0 billion through ancillary fees in the third quarter of 2009 up 36.4 percent from the third quarter of 2008 (Table 1A). The ancillary fees constituted 6.9 percent of the total revenue of the 26 carriers that reported receiving ancillary fees (Table 1B).

The airlines collected $740 million in baggage fees (Table 1C), $614 million from reservation change fees (Table 1D), and $601 million from other ancillary fees, such as pet transportation fees and frequent flyer award program mileage sales (Table 1E). Revenue from seating assignments and on-board sales of food, drink, pillows, blankets, entertainment, or any other ancillary items are reported in a different category with other items.

Delta Air Lines collected $447.5 million in the third quarter ancillary fees, the most of any carrier. Delta collected $24 of ancillary fees per passenger, the most of any airline (Table 1A). See Table 1A for the 10 airlines that collected the most in total ancillary fees in the third quarter. For other carriers and additional historic data, go to Passenger Baggage, Reservation Cancellation Fees or Miscellaneous Operating Revenue at BTS Schedule P-12.

Network carriers as a group posted their first operating profit margin since September 2007 while the low-cost and regional groups continued to report profit margins. The regionals’ profit margin of 8.3 percent was its largest since the fourth quarter of 2006.

The airlines covered in this press release reported their second overall profitable operating quarter in the last two years. American Airlines and Express Jet Airlines were the only two of the 20 airlines to report loss margins while the remaining 18 reported profit margins (Tables 2, 3, 4). See Airline Financial Data Press Releases for historic data.

Operating margin measures profit or loss as a percentage of the airline’s total operating revenue.

Mesa Airlines requested confidentiality for its third quarter 2009 financial report. The numbers are being withheld pending a decision on the motion. The tables in this release include Mesa’s previous quarterly data.

paxhauler85

We've done this (not reported numbers on time), as long as I can remember.

It's because the numbers always suck, and they think waiting to show them makes it better.

Thumbs up management.

therapy

There's a difference between being late and wanting to keep it secret. It's hard embezzle (um, I mean give upper management bonuses) when everybody knows how much money the company is losing.