U.S. Airlines Lose $1.0 Billion in First Quarter 2026, a Decrease Over First Quarter 2025

U.S. scheduled passenger airlines reported a first-quarter 2026 after-tax net loss of $966 million and a pre-tax operating profit of $912 million.

One year earlier, in the first quarter of 2025, the airlines reported an after-tax net loss of $209 million and a pre-tax operating gain of $154 million.

After-tax net income

$966 million loss in 1Q 2026

Compared to 633 million gain in 4Q 2025

Compared to 209 million loss in 1Q 2025

Pre-tax operating profit

$912 million gain in 1Q 2026

Compared to $3.6 billion gain in 4Q 2025

Compared to $154 million gain in 1Q 2025

Total 1Q 2026 operating revenue: $63.4 billion:
Share of total 1Q 2026 operating revenue:
▪    Fares: $46.2 billion, 72.9% compared to 74.1% in 1Q 2025
▪    Baggage fees: $1.9 billion, 3.0% compared to 2.9% in 1Q 2025
▪    Reservation change fees: $227 million, 0.4% compared to 0.4% in 1Q 2025

Fees are included for calculations of net income, operating revenue and operating profit or loss.

Total 1Q 2026 operating expenses: $62.4 billion:
Share of total 1Q 2026 operating revenue:
▪ Fares: $10.9 billion, 17.5% compared to 17.0% in 1Q 2025
▪ Labor: $23.3 billion, 37.3% compared to 37.4% in 1Q 2025

Domestic operations, includes 22 U.S. airlines

After-tax domestic net profit (net income)

$531 million loss in 1Q 2026

Compared to $364 million gain in 4Q 2025

Compared to $158 million loss in 1Q 2025

Pre-tax domestic operating profit/loss

$919 million gain in 1Q 2026

Compared to $2.7 billion gain in 4Q 2025

Compared to 158 million loss in 1Q 2025

1Q 2026 domestic operating revenue: $47.9 billion
Share of total 1Q 2026 domestic operating revenue:
▪    Fares: $33.4 billion, 69.8%, compared to 71.3% in 1Q 2025
▪    Baggage fees: $1.6 billion, 3.3%, compared to 3.0% in 1Q 2025
▪    Reservation change fees: $174 million, 0.4%, compared to 0.4% in 1Q 2025

Fees are included for calculations of net income, operating revenue and operating profit or loss.

1Q 2026 domestic operating expenses: $47.0 billion, of which:
Share of total 1Q 2026 domestic operating expenses:
▪ Fuel: $7.4 billion, 15.8%, compared to 15.5% in 1Q 2025
▪ Labor: $17.3 billion, 36.9%, compared to 37.1% in 1Q 2025

International operations, includes 17 U.S. airlines

After-tax international net profit (net income)

$435 million loss in 1Q 2026

Compared to $269 million gain in 4Q 2025

Compared to $52 million loss in 1Q 2025

Pre-tax international operating profit

$8 million loss in 1Q 2026

Compared to $808 million gain in 4Q 2025

Compared to $157 million gain in 1Q 2025

1Q 2026 international operating revenue: $15.5 billion, of which:
Share of total 1Q 2026 international operating revenue:
▪    Fares: $12.7 billion, 82.3%, compared to 82.8% in 1Q 2025
▪    Baggage fees: $358 million, 2.3%, compared to 2.4% in 1Q 2025
▪    Reservation change fees: $53 million, 0.3%, compared to 0.3% in 1Q 2025

Fees are included for calculations of net income, operating revenue and operating profit or loss.

1Q 2026 international operating expenses: $15.5 billion, of which:
Share of total 1Q 2026 international operating expenses:
▪ Fuel: $3.5 billion, 22.6%, compared to 21.9% in 1Q 2025
▪ Labor: $6.0 billion, 38.7%, compared to 38.5% in 1Q 2025

1st Quarter Margins

Net margin is the net income or loss as a percentage of operating revenue. Operating margin is the operating profit or loss as a percentage of operating revenue.

Systemwide

Net income margin: