The largest scheduled passenger airlines reported a 6.0 percent profit margin in the second quarter of 2012, up from 5.3 percent in the second quarter of 2011, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported today in a release of preliminary data (Table 1).

BTS, a part of the Research and Innovative Technology Administration, reported that the nine largest airlines, based on passengers in the second quarter, achieved an operating profit margin - as a group - in each of the last five quarters. Together, they posted a profit of $2.3 billion with all of the large carriers reporting an operating profit. These nine airlines carried 80.0 percent of U.S. airlines' scheduled service passengers in the second quarter of 2012.  See Airline Financial Data Press Releases for historic data.

The top nine airlines reported $670 million in Net Income in the second quarter (Table 2). Net Income and Operating Profit or Loss are two different measures of airline financial performance. Operating Profit or Loss is calculated from operating revenues and expenses. Net Income may include non-operating income and expenses, nonrecurring items or income taxes.

As part of their second-quarter revenue, all U.S. passenger airlines collected a total of $931 million in baggage fees and $661 million from reservation change fees from April through June 2012. Fees would be included for calculations of Net Income and Operating Profit or Loss.

Baggage fees and reservation change fees are the only ancillary fees paid by passengers that are reported to BTS as separate items. Other fees, such as revenue from seating assignments and on-board sales of food, beverages, pillows, blankets, and entertainment are combined in different categories and cannot be identified separately.

The press release includes these additional tables for the 10 top carriers: Table 3, Unit Costs; Table 4, Unit Revenues; Table 5, Passenger Revenue Yield.

Additional airline financial data can be found on the BTS website, including numbers for other individual low-cost and regional airlines reported on previous BTS quarterly financial press releases.  Operating profit/loss and operating revenue can be found on these tables. Fuel cost and consumption numbers are also available from these tables. See the BTS financial databases for more detailed data.

Data are compiled from quarterly financial and monthly traffic reports filed with BTS by commercial air carriers. Financial and traffic data are preliminary and include data received by BTS as of Sept. 12.  Revised carrier data and late data filings will be made available monthly on TranStats on the Monday following the second Tuesday of the month. All data are subject to revision. BTS will release third-quarter data in December.