U.S. airlines post $966 million first-quarter net loss as operating profit improves

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US airlines Q1 2026 net loss

Highlights

U.S. scheduled passenger airlines report a $966 million after-tax net loss in Q1 2026, reversing from a $633 million gain in Q4 2025.
Pre-tax operating profit rises to $912 million in Q1 2026 from $154 million a year earlier, with total operating revenue at $63.4 billion.
Domestic operations generate $919 million pre-tax profit in Q1 2026, offsetting weaker international results and supporting overall operating profitability.

First-quarter financial results and revenue mix

As reported by the Bureau of Transportation Statistics, U.S. scheduled passenger airlines report an after-tax net loss of $966 million in the first quarter of 2026, compared with a $633 million gain in the fourth quarter of 2025 and a $209 million loss a year earlier. Pre-tax operating profit reaches $912 million, up from $154 million in the first quarter of 2025 but down from $3.6 billion in the prior quarter.

Total operating revenue stands at $63.4 billion in the quarter, while total operating expenses are $62.4 billion. Fares account for $46.2 billion, or 72.9% of operating revenue, down from 74.1% a year earlier, while baggage fees contribute $1.9 billion, or 3.0%, and reservation change fees contribute $227 million, or 0.4%.

On the cost side, fuel expenses total $10.9 billion, equal to 17.5% of revenue, compared with 17.0% in the first quarter of 2025. Labor costs reach $23.3 billion, or 37.3% of revenue, nearly unchanged from 37.4% a year earlier.

Domestic carriers outperform international operations

Domestic operations, covering 22 U.S. airlines, post an after-tax net loss of $531 million in the first quarter, compared with a $364 million gain in the fourth quarter of 2025 and a $158 million loss in the first quarter of 2025. However, domestic pre-tax operating profit reaches $919 million, reversing from a $158 million operating loss a year earlier, on operating revenue of $47.9 billion.

International operations, covering 17 U.S. airlines, post an after-tax net loss of $435 million, compared with a $269 million gain in the prior quarter and a $52 million loss a year earlier. Their pre-tax operating result turns to an $8 million loss from a $157 million gain in the first quarter of 2025, with international operating revenue at $15.5 billion.

The quarterly data indicate that domestic networks provide the main support for airline operating profitability, while international routes weaken overall results. The figures also suggest that airlines remain able to generate operating gains even as net results stay under pressure.

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