US Airlines gain $5.5 billion in second quarter 2023, an improvement over second quarter 2022

U.S. airline financial reports are filed quarterly with the Bureau of Transportation Statistics (BTS). See the tables that accompany this release on the BTS website for additional second-quarter (Tables 1-6) financial results.

2Q 2023 Results for All 26 Scheduled U.S. Passenger Airlines

U.S. scheduled passenger airlines reported a second-quarter 2023 after-tax net gain of $5.5 billion and a pre-tax operating gain of $7.7 billion.

One year earlier, in the second quarter of 2022, the airlines reported an after-tax net gain of $2.2 billion and a pre-tax operating gain of $4.7 billion.

After-tax net income

$5.5 billion gain in 2Q 2023
Compared to $1.2 billion loss in 1Q 2023
Compared to $2.2 billion gain in 2Q 2022

Pre-tax operating profit

$7.7 billion gain in 2Q 2023
Compared to $32 million gain in 1Q 2023
Compared to $4.7 billion gain in 2Q 2022

• Total 2Q 2023 operating revenue: $63.0 billion
  • Share of total 2Q 2023 operating revenue:
    • Fares: $48.2 billion, 76.5%, compared to 73.2% in 2Q 2022
    • Baggage fees: $1.9 billion, 3.0%, compared to 3.1% in 2Q 2022
    • Reservation change fees: $281 million, 0.4%, compared to 0.4% in 2Q 2022

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

• Total 2Q 2023 operating expenses: $55.3 billion:
  • Share of total 2Q 2023 operating expenses:
    • Fuel: $10.6 billion, 19.3%, compared to 26.5% in 2Q 2022
    • Labor: $19.7 billion, 35.6%, compared to 29.6% in 2Q 2022
      

Domestic operations, includes 26 U.S. airlines:

After-tax international net profit (net income) $1.7 billion gain in 2Q 2023 Compared to $53 million gain in 1Q 2023 Compared to $347 million loss in 2Q 2022 Pre-tax international operating profit $2.2 billion gain in 2Q 2023 Compared to $436 million gain in 1Q 2023 Compared to $99 million gain in 2Q 2022 2Q 2023 international operating revenue: $16.4 billion, of which: Share of 2Q 2023 international operating revenue: Fares: $13.9 billion, 84.7%, compared to 80.3% in 2Q 2022 Baggage fees: $360 million, 2.2%, compared to 2.8% in 2Q 2022 Reservation change fees: $45 million, 0.3%, compared to 0.3% in 2Q 2022 Fees are included for calculations of net income, operating revenue and operating profit or loss. 2Q 2023 international operating expenses: $14.2 billion, of which: Share of 2Q 2023 international operating expenses: Fuel: $3.4 billion, 23.7%, compared to 34.0% in 2Q 2022 Labor: $5.1 billion, 35.7%, compared to 30.0% in 2Q 2022 1st 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: 8.7% in 2Q2023 Compared to 3.9% in 2Q2022 Operating margin: 12.2% in 2Q2023 Compared to 8.2% in 2Q2022 Domestic Net income margin: 8.0% in 2Q2023 Compared to 5.7% in 2Q2022 Operating margin: 11.8% in 2Q2023 Compared to 10.2% in 2Q2022 International Net income margin: 10.5% in 2Q2023 Compared to -2.8% in 2Q2022 Operating margin: 13.4% in 2Q2023 Compared to 0.8% in 2Q2022 Reporting notes Additional data: BTS website, see tables for operating profit/loss, operating revenue and fuel cost and consumption. See the BTS financial databases for more detailed data including numbers for individual airlines. Filing requirement: By regulation, for the quarter ending Dec. 31, airlines that operate at least one aircraft that is designed/certified for more than 60 seats or the capacity to carry a payload of passengers and cargo weighing more than 18,000 pounds must report financial data to BTS by March 31. The airline filings are subject to a process of quality assurance and data validations before release to the public. Data updates: Revised carrier data and late data filings will be made available monthly on TranStats on the Monday following the second Tuesday of the month. All data are subject to revision. BTS will release third-quarter 2023 data on December 15. Missing carriers: The information provided within BTS statistical releases may not be based on 100% of reporting carriers. Generally, data are released per schedule if reports have been received from at least 90% of the carriers, along with data from all the major carriers. Regarding this release, the following carriers remain pending: Aloha Air Cargo (KH), Elite Airways LLC (2HQ), Northern Air Cargo Inc. (NC), Kalitta Charters (KLQ). Also, within text, percent change results may not be exact due to rounding.