The 17 U.S. scheduled service passenger airlines reported an after-tax net profit from international operations as a group for the 11th consecutive quarter.
In addition to the international after-tax net profit of $1.1 billion based on net income reports, the scheduled service passenger airlines reported a $1.6 billion pre-tax operating profit in the third quarter of 2017 from their international operations, up from $1.2 billion in the second quarter and down from $1.8 billion in the third quarter of 2016. The airlines reported a pre-tax operating profit from international operations - as a group - for the 22nd consecutive quarter.
Total operating revenue from international operations for all U.S. passenger airlines in the July-September third-quarter of 2017 was $12.0 billion. Airlines collected $10.1 billion from fares, 84.3 percent of total third-quarter operating revenue.
Total operating expenses from international operations for all passenger airlines in the third-quarter of 2017 were $10.4 billion, of which fuel costs accounted for $2.3 billion, or 21.8 percent, and labor costs accounted for $3.9 billion, or 37.3 percent.
In the third quarter, passenger airlines collected from international operations a total of $265 million in baggage fees, 2.2 percent of total operating revenue, and $256 million from reservation change fees, 2.1 percent of total operating revenue.
3rd Quarter Margins for All Scheduled Passenger Airlines
All U.S. scheduled passenger airlines reported a combined net income margin of 8.2 percent in the third quarter of 2017, down from a net margin of 8.6 percent in the third quarter of 2016. Net margin is the net income or loss as a percentage of operating revenue. These airlines reported an operating profit margin of 13.9 percent in the third quarter of 2017, down from 16.3 percent in the third quarter of 2016. Operating margin is the operating profit or loss as a percentage of operating revenue.
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