US Airlines’ Net Gain Was $4 Billion in the Second Quarter of 2025, an Increase in Net Gain over the Second Quarter of 2024 :: Hospitality Trends

2Q 2025 Results for All 23 Scheduled U.S. Passenger Airlines

U.S. scheduled passenger airlines reported a second-quarter 2025 after-tax net income of $4.0 billion and a pre-tax operating profit of $5.0 billion.

One year earlier, in the second quarter of 2024, the airlines reported an after-tax net income of $3.8 billion and a pre-tax operating profit of $6.3 billion.

After-tax net income 

• $4.0 billion gain in 2Q 2025
• Compared to $223 million loss in 1Q 2025
• Compared to $3.8 billion gain in 2Q 2024

Pre-tax operating profit 

• $5.0 billion gain in 2Q 2025
• Compared to $140 million gain in 1Q 2025
• Compared to $6.3 billion gain in 2Q 2024

• Total 2Q 2025 operating revenue: $65.7 billion:

  • Share of total 2Q 2025 operating revenue:

    • Fares: $49.4 billion, 75.1% compared to 75.5% in 2Q 2024
    • Baggage fees: $1.8 billion, 2.7% compared to 3.0% in 2Q 2024
    • Reservation change fees: $260 million, 0.4% compared to 0.4% in 2Q 2024

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

• Total 2Q 2025 operating expenses: $60.7 billion:

  • Share of total 2Q 2025 operating revenue:

    • Fares: $10.0 billion, 16.5% compared to 19.9% in 2Q 2024
    • Labor: $22.9 billion, 37.7% compared to 35.7% in 2Q 2024

After-tax domestic net profit (net income) 

• $2.2 billion gain in 2Q 2025
• Compared to $172 million loss in 1Q 2025
• Compared to $2.6 billion gain in 2Q 2024

Pre-tax domestic operating profit 

• $3.0 billion gain in 2Q 2025
• Compared to $17 million loss in 1Q 2025
• Compared to $4.4 billion gain in 2Q 2024

• 2Q 2025 domestic operating revenue: $48.1 billion

  • Share of total 2Q 2025 domestic operating revenue:

    • Fares: $34.5 billion, 71.6%, compared to 72.2% in 2Q 2024
    • Baggage fees: $1.5 billion, 3.0%, compared to 3.3% in 2Q 2024
    • Reservation change fees: $208 million, 0.4%, compared to 0.5% in 2Q 2024

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

• 2Q 2025 domestic operating expenses: $45.2 billion, of which:

  • Share of total 2Q 2025 domestic operating expenses:

    • Fuel: $6.8 billion, 15.0%, compared to 18.2% in 2Q 2024
    • Labor: $16.9 billion, 37.4%, compared to 35.5% in 2Q 2024

After-tax international net profit (net income) 
•    $1.8 billion gain in 2Q 2025
•    Compared to $52 million loss in 1Q 2025
•    Compared to $1.2 billion gain in 2Q 2024

Pre-tax international operating profit 

• $2.0 billion gain in 2Q 2025
• Compared to $157 million gain in 1Q 2025
• Compared to $1.8 billion gain in 2Q 2024

• 2Q 2025 international operating revenue: $17.6 billion, of which:

  • Share of 2Q 2025 international operating revenue:

    • Fares: $14.9 billion, 84.7%, compared to 84.8% in 2Q 2024
    • Baggage fees: $351 million, 2.0%, compared to 2.2% in 2Q 2024 
    • Reservation change fees: $51 million, 0.3%, compared to 0.3% in 2Q 2024

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

• 2Q 2025 international operating expenses: $15.6 billion, of which:

  • Share of total 2Q 2025 international operating expenses:

    • Fuel: $3.3 billion, 20.9%, compared to 24.9% in 2Q 2024
    • Labor: $6.0 billion, 38.5%, compared to 36.3% in 2Q 2024

2nd 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: 

• 6.1% in 2Q2025
• Compared to 5.8% in 2Q2024

Operating margin:

• 7.6% in 2Q2025
• Compared to 9.6% in 2Q2024

Domestic
Net income margin: 

• 4.6% in 2Q2025
• Compared to 5.4% in 2Q2024

Operating margin:

• 6.2% in 2Q2025
• Compared to 9.2% in 2Q2024

International
Net income margin: 

• 10.1% in 2Q2025
• Compared to 7.1% in 2Q2024

Operating margin:

• 11.5% in 2Q2025
• Compared to 10.8% in 2Q2024