U.S. Airlines Deliver Record-Setting Year for Operational Performance in Key Service Areas

Commercial aviation helps drive more than 10M American jobs and 5 cents of every dollar of U.S. GDP
Commercial aviation drives more than $1 trillion per year in economic activity
In 2012, U.S. airlines moved more than 48,000 tons of cargo per day
In 2012, the value of a kilogram of U.S. merchandise exported by air averaged 121 times the value exported by sea
For every 100 airline jobs, some 360 are supported outside of the airline industry
Federal taxes constitute $61 – or 20% – of the price of a typical $300 domestic round-trip ticket
In 2011, U.S. airlines carried 16 percent more passengers and cargo using 10 percent less fuel than in 2000
Domestically, airlines drive 5% of economic activity but account for 2% of man-made GHG emissions
From 2000-2011, airlines reduced GHG emissions by 11% while transporting 16% more passengers and cargo
From 1975-2011, U.S. airlines and their partners reduced significant noise exposure by 99%
Commercial air travel is the safest form of intercity transportation in the United States
In the most recent decade, scheduled air service on U.S. airlines was seven times safer than in the 1970s
From 2000-2012, U.S. airlines improved the on-time arrival rate from 72.6% to 81.9%
From 2000-2012, U.S. airlines reduced the flight cancellation rate sharply from 3.30% to 1.29%
Airfares are a bargain: From 2000-2012, U.S. CPI rose 33% while average domestic fare rose just 14%
Adjusted for inflation, the average round-trip domestic airfare fell 15% from 2000
2007 domestic flight delays cost the United States approximately $31 billion
In 2012, the value of U.S. merchandise exported by air reached an all-time high of $427B
In 2012, U.S. exports of air-travel services reached an all-time high of $39.5B, driving a $5.1B trade surplus
In 2012, U.S. passenger and cargo airlines spent more than $50B on fuel, averaging 36% of operating expenses
In 2012, U.S. airlines posted the lowest annual rate of mishandled baggage ever recorded
FAA projects U.S. air travel demand to top 1 billion passengers in 2027
In 2012, US airlines flew 83.4 million passengers in scheduled international service - a record high
In 2012, the total value of merchandise exported from or imported to the United States by air exceeded $927 billion
In 2012, 7.15 teragrams of merchandise was exported from or imported to the United States by air

	U.S. Airlines Deliver Record-Setting Year for Operational Performance in Key Service Areas
	PubZone1 Airlines Eke Out Narrow Profit as Expenses Outpace Revenues for Second Year in a Row Customers, Industry Would Benefit From a National Airline Policy WASHINGTON, Feb. 21, 2013 – Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, today reported that U.S. airlines delivered one of their best years ever for operational performance, built on their stellar safety record, and achieved a narrow profit as expenses grew faster than revenues for the second consecutive year. According to the Department of Transportation’s Air Travel Consumer Report, 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, the lowest cancellation rate since 2002 and reduced tarmac delays. The 10 U.S. airlines reporting full-year 2012 results to date earned a combined $152 million or 21 cents of net profit for every passenger enplaned. 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. “U.S. 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 A4A 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.” 2012 Financial Summary · Net profit: The $152 million profit reflects the results of 10 U.S. passenger airlines – Alaska, Allegiant, American, Delta, Hawaiian, JetBlue, Southwest, Spirit, United and US Airways – and translates to 0.1 percent of revenues. These results represent a decline of 64 percent from 2011, in which these same 10 carriers reported net income of $418 million or 0.3 percent of revenues. · Revenue and Expenses: Revenues increased 4.5 percent but were outpaced by expenses that rose 4.7 percent. Fuel costs rose 5.9 percent and fuel remained the industry’s largest cost at $50 billion or approximately 36 percent of total operating expenses, an all-time annual high. “U.S. airlines delivered some of their best operational performance for on-time arrivals and baggage delivery in history, while continuing their stellar record of safety and investing in ongoing improvement to the travel experience for customers,” said Dan Elwell, A4A’s Senior Vice President of Safety, Security and Operations. “This is a tremendous credit to the airlines and their employees who are committed to providing a safe, efficient and comfortable experience for air travelers.” 2012 Operational Summary · Customer Service: According to the Department of Transportation, the airlines had the best year ever for baggage performance with 997 of every 1,000 passengers having their bags properly handled. Also, 81.85 percent of U.S. airline flights arrived on time, the third best year on record and the highest since 2003. The flight cancellation rate of 1.29 percent was the lowest since 2002, aided in part by better-than-expected weather. Tarmac delays were also down year over year. The airlines achieved all of this despite weathering some of the highest jet fuel prices and steepest federal tax burdens in history and could be much more globally competitive with a National Airline Policy in place. A4A has proposed a policy that includes the following key points: Reduces taxes and fees on airfares. Reforms antiquated regulations that add unnecessary costs and do not benefit customers or safety. Modernizes the nation’s Air Traffic Control System to reduce delays and emissions. Stabilizes energy prices through a balanced and comprehensive national energy policy. Interested parties can follow the National Airline Policy campaign on Facebook at facebook.com/nationalairlinepolicy, Twitter at twitter.com/natl_air_policy and Google+ at http://bit.ly/Xi4PGg. They can also sign the petition at http://nationalairlinepolicy.com/. ABOUT A4A Annually, commercial aviation helps drive more than $1 trillion in U.S. economic activity and more than 10 million U.S. jobs. A4A airline members and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic. For more information about the airline industry, visit www.airlines.org and follow us on Twitter @airlinesdotorg. # # # PubZone2	A4A is a leading source for key aviation information.