Lower airline fuel costs reduce U.S. airlines’ operating expenses, increase net profits

U.S. Energy Information Administration ------- Lower crude oil prices in recent years have translated to lower fuel costs and overall lower operating expenses for U.S. passenger airlines. According to the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS), U.S. passenger airlines' collective net profit increased to $25.6 billion in 2015, up from $7.5 billion in 2014. Much of that increase is attributed to lower expenditures for kerosene-based aviation fuels, which fell by $16.5 billion from 2014 to 2015. Jet fuel spot prices remained favorable for airlines in 2016, averaging $1.25 per gallon, compared to an average of $1.53 per gallon in 2015, well below the average of $2.92 per gallon over the 2011-14 period. For more on lower airline fuel costs reduce U.S. airlines' operating expenses, increase net profits click on the picture below to read more from EIA.