Low-Cost and Regional Airlines Report Profits, Network Carriers Report Loss
Low-cost and regional airline groups reported operating profits in the fourth quarter of 2009 while the network airline group returned to a loss after one profitable quarter, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today in a release of preliminary data.
BTS, a part of the Research and Innovative Technology Administration, reported that the airline industry collected at least $1.9 billion through ancillary fees in the fourth quarter of 2009, up 18.3 percent from the fourth quarter of 2008. The ancillary fees constituted 6.5 percent of the total revenue of the 32 carriers that reported receiving ancillary fees. For the year, the carriers collected $7.8 billion in ancillary fee revenue, compared to $5.5 billion in 2008.
From October to December, the airlines collected $736 million in baggage fees, $564 million from reservation change fees, and $611 million from other ancillary fees, such as pet transportation fees and frequent flyer award program mileage sales. Revenue from seating assignments and on-board sales of food, drink, pillows, blankets, entertainment, or any other ancillary items are reported in a different category with other items.
Delta Air Lines collected $425.7 million in the fourth quarter ancillary fees, the most of any carrier, while 21.0 percent of Spirit Airlines’ operating revenue came from ancillary fees, a larger percent than any other carrier. See Table 1A of the press release for the 10 airlines that collected the most in total ancillary fees in the fourth quarter. For other carriers and additional historic data, go to Passenger Baggage, Reservation Cancellation Fees or Miscellaneous Operating Revenue at BTS Schedule P-12.
In 2009, the airlines collected $2.7 billion in baggage fees (Table 1C), $2.4 billion from reservation change fees, and $2.7 billion from other ancillary fees, such as pet transportation fees and frequent flyer award program mileage sales. Delta collected $1,647.6 million in annual ancillary fees, the most of any carrier.
See BTS Airline Financials Release for summary tables and additional data.
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