A4A says US airlines hit the mark in 2012
Airlines for America (A4A) reports that 2012 was one of the best years ever for the airline industry, performance-wise.
The industry organization quoted the Department of Transportation’s Air Travel Consumer Report in saying that the nation’s carriers achieved the best year for on-time arrivals since 2003, a record-high success rate of 99.7 percent for baggage handling and the lowest cancellation rate since 2002. Reduced tarmac delays also were reported.
The ten US airlines reporting full-year 2012 results to date earned a combined $152 million or 21 cents of net profit for every passenger.
Although A4A reported a banner year for performance, airlines’ financial gains for the year lagged behind.
Earnings fell as expenses rose 4.7 percent, outpacing 4.5 percent higher revenues. Maintenance material led the increase in costs, followed by fuel, labor and other items. The price of jet fuel reached a record-setting, year-long average of $128 per barrel, costing these carriers approximately $50 billion for the second consecutive year.
"US airlines eked out another year of meager profitability as expenses grew faster than revenues with record-setting fuel prices serving as a primary driver," said A4As vice president and chief economist John Heimlich. "The airlines spent some $50 billion to fuel their flights despite using half a billion fewer gallons in 2012 than in 2011 and last week the price of jet fuel hit its highest level in nearly a year. Fuel remains the airlines’ single largest expense."
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