BTS Releases 1st-Quarter 2013 Airline Financial Data

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BTS 31-13
Thursday, June 27, 2013
Contact: Dave Smallen
Tel: 202-366-5568          

 

BTS Releases 1st-Quarter 2013 Airline Financial Data;
Largest Airlines Report Smaller Net Loss  

The largest scheduled passenger airlines reported a net loss of $433 million in the first quarter of 2013, an improvement from a loss of $1.7 billion in the first quarter of 2012, 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 Department’s Research and Innovative Technology Administration, reported that the 10 largest airlines, as ranked by total number of passengers carried in the first quarter, reported a second consecutive quarterly net loss after two quarterly profits as a group. These 10 airlines carried 80.6 percent of U.S. airlines’ scheduled service passengers in the first quarter of 2013. 

In contrast to the Net Income reports, the top 10 airlines reported a 1.3 percent operating profit margin in the first quarter of 2013, up from a 0.7 percent profit margin in the first quarter of 2012.  

BTS is reporting numbers for Net Income or Loss as well as for Operating Profit or Loss for airlines. These are two different measures of airline financial performance. Net Income or Loss may include non-operating income and expenses, nonrecurring items or income taxes. Operating Profit or Loss is calculated from operating revenues and expenses.

 The 10 largest airlines achieved an operating profit margin - as a group - in each of the last eight quarters. Together, they posted a pre-tax profit of $438 million in the first quarter in contrast to a net loss of $433 million. 

Total revenue for all passenger airlines in the first-quarter of 2013 was $34.1 billion. All U.S. passenger airlines collected a total of $800 million in baggage fees and $685 million from reservation change fees from January through March 2013. Fees are included for calculations of Net Income, Operating Revenue and Operating Profit or Loss. 

Total operating expenses for all passenger airlines in the first-quarter of 2013 were $33.6 billion, of which $9.6 billion, or 28.6 percent, was used for fuel costs. See the database for expense and fuel data. 

See BTS Airline Financials Release for summary tables and additional data. See Airline Financial Data Press Releases for historic data. 

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DOT Fines Delta for Violating Bumping Compensation Rules

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DOT 58-13
Wednesday, June 26, 2013
Contact: Bill Mosley
Tel.: (202) 366-4570 

DOT Fines Delta for Violating Bumping Compensation Rules 

WASHINGTON – The U.S. Department of Transportation (DOT) today assessed a civil penalty against Delta Air Lines for violating federal rules protecting passengers who are denied boarding against their will, or “bumped,” on oversold flights. DOT fined Delta $750,000 and ordered the airline to cease and desist from further violations. 

“Airline passengers deserve to be treated fairly, especially if they are forced to miss a flight because an airline oversold seats,” said U.S. Transportation Secretary Ray LaHood. “Consumers have rights, and we will continue to take enforcement action when airlines violate our rules to protect the traveling public.” 

When an airline oversells a flight, DOT regulations require the airline to seek volunteers willing to give up their seats for compensation. If there is not a sufficient number of volunteers, the airline then bumps passengers involuntarily. Passengers are entitled to a written statement describing their rights and explaining how the airline decides whom it will bump first. In most cases, passengers bumped involuntarily also are entitled to cash compensation of up to $1,300 depending on the value of their tickets and the length of time that passengers are delayed. In addition, the larger U.S. airlines must file quarterly reports with DOT on the number of passengers who were bumped involuntarily from oversold flights as well as those who agreed voluntarily to give up their seats. 

In March 2012, the Department’s Aviation Enforcement Office found that, in a number of instances, Delta failed to seek volunteers before bumping passengers involuntarily, or bumped passengers involuntarily without providing them a written notice describing their rights or informing them that they had a right to cash compensation. In addition, Delta classified some passengers who were bumped involuntarily as having volunteered to give up their seats, which both violated the passengers’ rights to compensation and resulted in inaccurate bumping reports filed with DOT. Delta also violated its published customer commitment, which included a pledge to obey DOT’s bumping regulations.  

Delta may use up to $425,000 of the penalty to buy electronic tablets to record consumers’ decisions on whether they agreed to leave a flight and accept compensation offered by the airline, as well to train Delta personnel on using the tablets. The data collected can be used to help correct any problems the airline may have in complying with the bumping rules.  

This is Delta’s second violation of the Department’s bumping rules in the past four years. On July 9, 2009, the airline was fined $375,000 for violations similar to those included in today’s consent order. 

The consent order is available on the Internet at www.regulations.gov, docket DOT-OST-2013-0004. A summary of the oversales rules is available at www.dot.gov/airconsumer/fly-rights.

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BTS Releases April North American Freight Numbers

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BTS 30-13
Wednesday, June 26, 2013
Contact: Dave Smallen
Tel: 202-366-5568 

BTS Releases April North American Freight Numbers
Trucks Transported 60.6 Percent of U.S.-NAFTA Trade in April 2013 

The Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation today released the April North American Free Trade Agreement (NAFTA) freight numbers showing that trucks carried 60.6 percent of the $99.0 billion of freight moved in April 2013 between the United States and its NAFTA partners, Canada and Mexico. Trucks were followed by rail at 15.1 percent, vessels at 9.2 percent, pipelines at 6.8 percent and air at 3.8 percent. The surface transportation modes of truck, rail and pipeline carried 82.5 percent of the total NAFTA freight flows. 

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that in April, for freight flows with Canada, trucks carried 55.2 percent of the $54.7 billion of freight, followed by rail at 17.2 percent, pipelines at 11.7 percent, vessels at 6.0 percent and air at 4.6 percent. The surface transportation modes of truck, rail and pipeline carried 84.0 percent of the total U.S.-Canada freight flows. 

            For freight flows with Mexico in April, trucks carried 67.3 percent of the $44.2 billion of freight, followed by rail at 12.6 percent, vessel at 13.2 percent, air at 2.8 percent and pipelines at 0.8 percent. The surface transportation modes of truck, rail and pipeline carried 80.7 percent of the total U.S.-Mexico freight flows. 

Beginning with January 2013, BTS monthly TransBorder press releases contain data for all modes of transportation. Press releases and the BTS website now define surface transportation modes as truck, rail and pipeline. Data on surface modes can be found in Figure 3 and in Tables 2, 3, 4 and 7 of the press release. 

The value of goods moving between the U.S. and its NAFTA partners by all modes of transportation increased 7.4 percent from April 2012 and rose 74.4 percent from April 2009. Data in this press release are not adjusted for inflation, except for the monthly totals illustrated in Figure 2 for comparison.

See BTS Transborder Data Release for summary tables, state rankings and additional data. See North American Transborder Freight Data  on the BTS website for additional data for surface modes since 1995 and all modes since 2004.           

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BTS Releases April Passenger Airline Employment Data

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BTS 29-13
Tuesday, June 25, 2013
Contact: Dave Smallen
Tel: 202-366-5568 

BTS Releases April Passenger Airline Employment Data;
April 2013 Employment Down 2.4 Percent from April 2012 

U.S. scheduled passenger airlines employed 380,748 workers in April 2013, 2.4 percent fewer than in April 2012, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today. April was the eighth consecutive month that full-time equivalent (FTE) employment for U.S. scheduled passenger carriers was below that of the same month of the previous year. 

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that the April 2013 FTE total for scheduled passenger carriers was 9,495 fewer than in April 2012 and down 11,356, or 2.9 percent, from the recent April high of 392,104 in April 2009. Scheduled passenger airline categories include network, low-cost, regional and other airlines.  

The five network airlines that collectively employ two-thirds of the scheduled passenger airline FTEs reported 3.0 percent fewer FTEs in April 2013 than in April 2012, the ninth consecutive decline from the same month of the previous year. Delta Air Lines reduced FTEs by 3.6 percent from April 2012. American Airlines, which filed for bankruptcy in November 2011, reduced FTEs by 9.6 percent from April 2012. United Airlines reported 0.2 percent more FTEs than in April 2012. US Airways reported 1.6 percent more FTEs, while Alaska Airlines increased FTEs by 4.5 percent from April 2012. Network airlines operate a significant portion of flights using at least one hub where connections are made for flights to down-line destinations or spoke cities. 

Four of the six low-cost carriers - Allegiant Airlines, Virgin America Airlines, Spirit Airlines and JetBlue Airways - reported an increase in FTEs from April 2012.  Southwest Airlines and Frontier Airlines reported FTE declines from a year earlier. Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average. 

See Passenger Airline Employment press release for summary tables and additional data. Historical employment data can be found on the BTS web site. 

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DOT Proposes Four Cities to Receive New Rights for U.S.-Brazil Air Service

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DOT 57-13
Thursday, June 20, 2013
Contact: Bill Mosley
Tel.: (202) 366-4570

DOT Proposes Four Cities to Receive New Rights for U.S.-Brazil Air Service

The U.S. Department of Transportation (DOT) today proposed new or expanded U.S. carrier rights from four U.S. cities--Los Angeles, Atlanta, Detroit, and Charlotte--to Sao Paulo, Brazil. The proposed awards would go to American Airlines, Delta Air Lines, and US Airways.

“New air services to Brazil will provide important benefits for thousands of Americans and for tourists coming to the U.S.,” said U.S. Transportation Secretary Ray LaHood. “We look forward to additional opportunities for U.S.-Brazil air service when full Open Skies takes effect in two years.”

If today’s proposal is made final, American Airlines would inaugurate the only daily nonstop service by a U.S. airline between Los Angeles and Sao Paulo, while Delta would add a second daily flight from Atlanta. In addition, the tentative decision would enable Delta Air Lines to continue its daily service from Detroit and US Airways to continue to operate a daily flight from Charlotte, N.C.

The additional flights are the result of a U.S.-Brazil agreement reached in March 2011. The agreement provided for a phase-in of new air service opportunities until October 2015, after which all restrictions on air routes, destinations and fares between the two countries will be lifted.

In its proposed decision, the Department said that American Airlines’ planned Los Angeles service would provide the only nonstop flights by a U.S. carrier to Sao Paulo from the west coast, while a second daily flight by Delta from its Atlanta hub would give connecting passengers from more than 150 cities an additional option for travel to Brazil.

DOT’s proposed decision also would enable Delta and US Airways to continue Sao Paulo service that they might otherwise have to give up due to arrangements with other airlines. Continuing Delta’s Detroit service and US Airways’ Charlotte flights would maintain valuable connections to Brazil from two important hub airports, the Department tentatively found.

Comments on the proposed decision are due in 10 days, and answers to comments seven days afterward. After the comment period, the Department will prepare a final decision. The proposed decision, airline proposals and public comments may be found at www.regulations.gov, docket DOT-OST-2013-0072.


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