Travel News
Fewer Flights, More Revenue: Airlines Come Out Ahead
Recently, the Department of Transportation (DOT) reported on the best airlines in the US depending on the number of complaints per airline, on-time departures, and baggage handling.
This Monday, the DOT’s Research and Innovate Technology Administration (RITA) released the Bureau of Transportation Statistics for US airlines. The financial data reveals how much money airlines make each year, how many flights are taking off, and how many passengers are on them.
So how much are airlines making? As it turns out, the overall net income has varied significantly over the past 8 years; the net income of airlines has increased 153.5 percent.
This is due to several different factors. In 2005, the net income of airlines was negative $19.7 billion. Since then, airlines have cut back on expenses by reducing the number of seats available by consolidating and reducing routes.
The number of flights has decreased by about 17 percent since 2005. Meanwhile, the amount of passengers has remained relatively the same, decreasing by 1.77 percent since the same year.
Take a closer look at how many flights have been running each year, the number of passengers traveling, the overall operating revenue for airlines, and the net income. Keep in mind that the net income is what an airline has after covering expenses. Dollar amounts are in the thousands.
Year |
Flights |
Number of Passengers |
Operating Revenue |
Net Income |
2005 |
10,033,140 |
657,261,487 |
111,858,063 |
-19,747,536 |
2006 |
9,707,992 |
658,362,617 |
120,906,925 |
9,043,659 |
2007 |
9,835,722 |
679,168,758 |
124,502,978 |
2,995,875 |
2008 |
9,375,634 |
651,709,940 |
129,728,330 |
-18,173,970 |
2009 |
8,766,435 |
618,052,278 |
109,681,017 |
-2,252,074 |
2010 |
8,699,893 |
629,537,424 |
119,073,502 |
1,176,134 |
2011 |
8,647,261 |
638,247,232 |
132,822,096 |
1,440,558 |
2012 |
8,444,837 |
642,288,387 |
135,830,297 |
2,183,532 |
2013 |
8,314,486 |
645,614,813 |
139,198,783 |
10,574,605 |
In 2013, airlines collected $120.6 billion from fares, which represents 60.4 percent of total annual operating revenue.
In addition to tickets, passengers are paying for baggage fees as well as reservation cancellation and flight change fees. Baggage fees represent 1.7 percent of the total operating revenue, and brought in $3.3 billion last year.
Revenue from baggage fees has increased by 621.6 percent since 2007. The revenue airlines earn from reservation cancellation and change fees has increased from the same year by 207.5 percent.
Here’s a closer look at the numbers. Dollar amounts are in the thousands.
Year |
Reservation Cancellation/Change Fees |
Baggage Fees |
2007 |
915,231 |
464,284 |
2008 |
1,668,748 |
1,149,408 |
2009 |
2,373,019 |
2,728,850 |
2010 |
2,297,377 |
3,395,471 |
2011 |
2,380,157 |
3,360,638 |
2012 |
2,554,658 |
3,486,936 |
2013 |
2,814,069 |
3,350,072 |
Want to know more about the best airlines and hidden fees? Check out:
- How to Change Your Flight for Free
- What Are the Best Airlines in America?
- Carry-On Luggage Rules Are Changing
- Where to Find the Cheapest Airfare
By Stephanie Ervin for PeterGreenberg.com