Big Airlines Narrowed Losses in Q4
The top 10 largest airlines, which account for 76.1% of all domestic air travel, lost a reported $145 million in Q4 of 2012, a significant improvement from the prior year's net loss of $602 million, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported this week.
For the year, the top airlines earned a combined net income of $201 million, compared to a net income loss of $0.50 million in 2011.
American Airlines led the way in the fourth quarter of 2012, reporting net income of $270.8 million, followed by Southwest Airlines , which earned $78.3 million. For the year, Delta topped the list of large airlines, with $1.18 billion in net income, according to the BTS.
For 2012, the 10 biggest airlines generated a total of $159.5 billion in revenues, of which $3.5 billion were baggage fees and nearly $2.6 billion came from reservation change fees. Baggage fees in 2011 totaled $3.36 billion while reservation cancellation/change fees in 2011 were $2.38 billion.
In both the fourth quarter of 2012 and for the year, Delta earned the most in baggage fees, generating $203.05 million and $865.88 million, respectively. Delta also generated the most reservation change fees of the group, earning $184.67 million in Q4, and $778.4 million for the year.
The article Big Airlines Narrowed Losses in Q4 originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Southwest Airlines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.