US airlines earn $4.8b Q1 pre-tax profit; revenue flat
The 10 publicly traded mainline US airlines reported a collective Q1 pre-tax profit of US$4.8b, according to Airlines for America (A4A). The earnings gave the industry a 13.2% pre-tax profit margin for the quarter, up two points from 11.2% in the prior-year quarter. Q1 operating revenue was flat year-over-year “as 6.7% lower fares offset 6.2% traffic growth,” according to A4A’s chief economist, noting that Q1 operating expenses fell 1.5% year-over-year as lower fuel costs offset higher employee wages and benefits. Fuel was the only expense category that saw a year-over-year decline in the quarter. Airfares, which fell in 2015 compared to 2014, are down so far in 2016 compared to 2015 and are at their lowest point in at least six years. “That is true whether you include ancillary fees or not,” he noted. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-19/general/us-airlines-earn-4-8b-q1-pre-tax-profit-revenue-flat
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US airlines earn $4.8b Q1 pre-tax profit; revenue flat
The 10 publicly traded mainline US airlines reported a collective Q1 pre-tax profit of US$4.8b, according to Airlines for America (A4A). The earnings gave the industry a 13.2% pre-tax profit margin for the quarter, up two points from 11.2% in the prior-year quarter. Q1 operating revenue was flat year-over-year “as 6.7% lower fares offset 6.2% traffic growth,” according to A4A’s chief economist, noting that Q1 operating expenses fell 1.5% year-over-year as lower fuel costs offset higher employee wages and benefits. Fuel was the only expense category that saw a year-over-year decline in the quarter. Airfares, which fell in 2015 compared to 2014, are down so far in 2016 compared to 2015 and are at their lowest point in at least six years. “That is true whether you include ancillary fees or not,” he noted. <br/>
