Inclement weather in the first quarter of 2014 took a toll on airline profits, a compilation of financial results from the Department of Transportation’s Bureau of Transportation Statistics shows.
U.S. airlines remained in positive territory in the first quarter, an improvement from the collective loss incurred in the same quarter in 2013. The first quarter is historically weak for air travel, and this year’s extreme winter weather in many areas of the country further suppressed travel demand.
U.S.-scheduled passenger airlines reported a net profit of $507 million in the first quarter of 2014, down from a profit of $7.3 billion in the fourth quarter of 2013 and up from a loss of $392 million in the first quarter of 2013, BTS reported.
American Airlines had the highest net income at $654 million, followed by United Airlines with net income at $580 million. Of the top 10 U.S. airlines, seven recorded positive income in the first quarter and three had a net loss. The worst performance came from Delta Air Lines, which reported a net loss of $587 million.
Total operating revenue for all U.S. passenger airlines in the first quarter of 2014 was $38.5 billion. Airlines collected $28.7 billion from fares, 74.7 percent of total first-quarter operating revenue. Total operating expenses for all passenger airlines in the first quarter of 2014 were $36.8 billion, of which fuel costs accounted for $10.2 billion, or 27.7 percent, and labor costs accounted for $9.7 billion, or 26.4 percent.
