U.S. Airlines Report Third Quarter 2020 Losses

U.S. Airlines Financial Performance

U.S. Airlines Report Third Quarter 2020 Losses

U.S. scheduled passenger airlines reported a third-quarter 2020 after-tax net loss of $11.8 billion and a pre-tax operating loss of $15.9 billion.

These third-quarter losses are the third consecutive quarterly losses following 27 consecutive quarterly after-tax net profits and 35 consecutive quarterly pre-tax operating profits. One year earlier, in the third quarter of 2019, the airlines reported an after-tax net profit of $4.6 billion and a pre-tax operating profit of $6.4 billion.

Figure 1. Systemwide U.S. Scheduled Service Passenger Airlines Quarterly After Tax Net Profit, 3Q2020Source: Bureau of Transportation Statistics

After-tax net income

$11.8 billion loss in 3Q 2020 Compared to $11.0 billion loss in 2Q 2020 Down from $4.5 billion gain in 3Q 2019

Pre-tax operating profit

$15.9 billion loss in 3Q 2020 Compared to $16.2 loss in 2Q 2020 Compared to $6.4 billion gain in 3Q 2019 Total 3Q 2020 operating revenue: $14.0 billion, of which: $8.2 billion (58.4%) from fares $601.3 million (4.3%) from baggage fees $61.9 million (0.4%) from reservation change fees Total 3Q 2020 operating expenses: $30.0 billion Fuel costs accounted for $2.1 billion, 6.9% of total operating expenses Labor costs accounted for $12.4 billion, 41.5% of total operating expenses

Fees are included for calculations of net income, operating revenue and operating profit or loss.

Domestic operations, includes 22 U.S. airlines:

Figure 2. Domestic U.S. Scheduled Service Passenger Airlines Quarterly After Tax Net Profit, 3Q2020Source:

After-tax international net profit (net income)

$2.3 billion loss in 3Q 2020 Compared to $2.1 billion loss in 2Q 2020 Compared to $1.3 billion gain in 3Q 2019

Pre-tax international operating profit

$2.3 billion loss in 3Q 2020 Compared to $2.1 billion loss in 2Q 2020 Compared to $1.7 billion gain in 3Q 2019 Total 3Q 2020 international operating expenses: $4.3 billion, Fuel costs accounted for $452.3 million, 10.5% of international operating expenses Labor costs accounted for $1.9 billion, 44.0% of international operating expenses

3rd Quarter Margins

Net margin is the net income or loss as a percentage of operating revenue. Operating margin is the operating profit or loss as a percentage of operating revenue.

Systemwide:

Net income margin:

-84.1% in 3Q2020 Compared to 8.8% in 3Q 2019

Operating margin:

-113.7% in 3Q2020 Compared to 12.4% in 3Q 2019

Domestic

Net income margin:

-79.0% in 3Q2020 Compared to 8.4% in 3Q 2019

Operating margin:

-114.1% in 3Q2020 Compared to 12.2% in 3Q 2019

International

Net income margin:

-113.9% in 3Q2020 Compared to 9.9% in 3Q 2019

Operating margin:

-111.1% in 3Q2020 Compared to 13.0% in 3Q 2019

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