INTRAVELREPORT: US Airlines lose $1.2 billion in first quarter 2023, an improvement over first 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 first-quarter (Tables 1-6) financial results.

1Q 2023 Results for All 26 Scheduled U.S. Passenger Airlines

U.S. scheduled passenger airlines reported a first-quarter 2023 after-tax net loss of $1.2 billion and a pre-tax operating gain of $32 million.

One year earlier, in the first quarter of 2022, the airlines reported an after-tax net loss of $5.1 billion and a pre-tax operating loss of $5.2 billion.

After-tax net income

$1.2 billion loss in 1Q 2023
Compared to $2.1 billion gain in 4Q 2022
Compared to $5.1 billion loss in 1Q 2022

Pre-tax operating profit

$32 million gain in 1Q 2023
Compared to $3.7 billion gain in 4Q 2022
Compared to $5.2 billion loss in 1Q 2022

Total 1Q 2023 operating revenue: $52.9 billion

Share of total 1Q 2023 operating revenue:

Fares: $39.5 billion, 74.6%, compared to 68.9% in 1Q 2022
Baggage fees: $1.7 billion, 3.3%, compared to 3.7% in 1Q 2022
Reservation change fees: $256 million, 0.5%, compared to 0.6% in 1Q 2022

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

Total 1Q 2023 operating expenses: $52.9 billion:

Share of total 1Q 2023 operating expenses:

Fuel: $12.0 billion, 22.6%, compared to 19.5% in 1Q 2022
Labor: $17.7 billion, 33.4%, compared to 34.2% in 1Q 2022

Domestic operations, includes 26 U.S. airlines:

After-tax domestic net profit (net income)

$1.3 billion loss in 1Q 2023
Compared to $1.3 billion gain in 4Q 2022
Compared to $3.5 billion loss in 1Q 2022

Pre-tax domestic operating profit

$403 million loss in 1Q 2023
Compared to $2.7 billion gain in 4Q 2022
Compared to $3.6 billion loss in 1Q 2022

1Q 2023 domestic operating revenue: $40.4 billion

Share of total 1Q 2023 domestic operating revenue:

Fares: $29.2 billion, 72.4%, compared to 68.3% in 1Q 2022
Baggage fees: $1.4 billion, 3.5%, compared to 3.7% in 1Q 2022
Reservation change fees: $219 million, 0.5%, compared to 0.6% in 1Q 2022

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

1Q 2023 domestic operating expenses: $40.8 billion, of which:

Share of total 1Q 2023 domestic operating expenses:

Fuel: $8.6 billion, 21.0%, compared to 18.0% in 1Q 2022
Labor: $13.6 billion, 33.4%, compared to 33.9% in 1Q 2022

International operations, includes 20 U.S. airlines:

Bar chart showing international U.S. scheduled service passenger airlines quarterly income for 1Q 2022 through 1Q 2023

After-tax international net profit (net income)

$53 million gain in 1Q 2023
Compared to $782 million gain in 4Q 2022
Compared to $1.6 billion loss in 1Q 2022

Pre-tax international operating profit

$436 million gain in 1Q 2023
Compared to $982 million gain in 4Q 2022
Compared to $1.6 billion loss in 1Q 2022

1Q 2023 international operating revenue: $12.5 billion, of which:

Share of 1Q 2023 international operating revenue:

Fares: $10.2 billion, 81.8%, compared to 71.3% in 1Q 2022
Baggage fees: $323 million, 2.6%, compared to 3.8% in 1Q 2022
Reservation change fees: $37 million, 0.3%, compared to 0.4% in 1Q 2022

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

1Q 2023 international operating expenses: $12.1 billion, of which:

Share of 1Q 2023 international operating expenses:

Fuel: $3.4 billion, 28.2%, compared to 25.4% in 1Q 2022
Labor: $4.0 billion, 33.5%, compared to 35.6% in 1Q 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: