The United States’ 25 domestic commercial airlines that offer scheduled passenger service have continued a strong run of profitability. According to data released by the U.S. Bureau of Transportation Statistics for the third quarter of 2016, the group posted profits for the 14th consecutive quarter, with combined net earnings of $3.8 billion for the period.
These carriers have now reported positive results for three and a half years. Pre-tax operating profits for the group increased as well, marking the 22nd straight quarter of growth in that metric. Passenger fares generated $33.3 billion in revenue during the third quarter, representing 75.1 percent of total operating revenue for the period.
Lower fuel prices have been a major contributor to the industry’s improved financial performance. In the third quarter, fuel expenses remained under 20 percent of total costs, totaling $6.1 billion—about 16.4 percent of overall operating expenses. Total operating expenses for all passenger airlines in that quarter were $37.2 billion. Labor remained the largest single cost component, at $12.7 billion or 34.3 percent of expenses.
Ancillary charges also added to the bottom line. Airlines collected $1.1 billion in baggage fees and $731 million in reservation change fees during the third quarter, helping to bolster overall profitability.