The U.S. airline industry earned roughly $15.5 billion in after-tax profits in 2017, driven in part by fees for checked baggage and reservation changes, according to a report from the Federal Bureau of Transportation Statistics.
Across 23 major U.S. carriers, after-tax profits rose to $15.5 billion in 2017, up from $14.0 billion the year before — an increase of about 10.2 percent.
Total revenues for these carriers reached $175.3 billion. That included roughly $130.5 billion from passenger airfares, $4.6 billion from baggage fees and $2.9 billion from reservation-change fees. The reported figures did not itemize other revenue streams such as seat selection charges or onboard sales of food and entertainment.
Domestic service provided the bulk of profitability: after-tax net profits on domestic fares increased to $13.4 billion in 2017, up from $10.3 billion in 2016. In contrast, profits from international routes fell, declining from $3.8 billion in 2016 to $2.1 billion in 2017.
Higher fuel costs weighed on industry earnings as well. Fuel expenses rose about 16.3 percent compared with 2016, reducing what would otherwise have been even larger profits for 2017.