Airline Profit Margins

funguy2

Veteran
Aug 20, 2002
1,755
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Here is a list of Operating and Net Profit Margins, sorted by best to worst:

Airline / Op Margin / Net Margin
WN / 11.4% / 7.1%
AS / 10.9% / 5.8%
B6 / 7.1% / 3.6%
NW / 2.6% / -1.2%
CO / 0.9% / -0.6%
AA / -0.5% / -4.4%
UA / -1.5% / -6.4%
FL / -4.8% / -4.0%
HP / -4.9% / -8.1%
US / -9.8% / -12.9%
DL / -10.9% / -16.7%

Operating Profit margin means $ of operating profit divided by $ of revenue.

In other words, for every $1 of revenue Southwest collects, they made an operating profit of $0.11. Another way to look at it is that US Airways and United both had a similar net loss (around $200mil), however, UAL's is less bad, as they lose less money on every dollar of revenue (since they have double US Airways revenue).

Operating profit/loss is exactly that, profit/loss from operations. Net profit/loss includes the effects of income taxes, interest and other non-operating expenses (and/or gains).

The up-side surprising result to me is Alaska, with better margins than jetBlue. The down-side surprises to me are AirTran and America West. While both companies warned of losses, I am surprised that their losses are worse than UAL's... I guess that makes UAL an upside surprise for me as well.

Moderators: I put this in the US Airways forum simply because I think US Airways forum gets the most traffic.
 

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