cyberentomology

cyberentomology OP t1_isyerkj wrote

Reply to comment by mmmmm_pi in [OC] Where did it come from, where did it go? United Airlines 22Q3 Financials by cyberentomology

The quarterly report didn’t really get into it much, but Other (income) is usually where things like loyalty programs, credit cards, commissions, etc come in (at least the parts that aren’t specifically related to travel redemptions). Delta gets into much more detail, perhaps United will do so in their annual report.

Other (expenses) is stuff like crew hotels and ground transportation, aircraft catering, etc.

Sankey diagrams are kind of low-effort, but they’re very well suited to things that flow, like rivers, and money.

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cyberentomology OP t1_isycb5d wrote

Reply to comment by wheslley_eurich in [OC] Where did it come from, where did it go... American Airlines 22Q2 Financials by cyberentomology

It’s not only utterly brutal on cash flow, it’s also extremely capital intensive. Which is why a few people with access to large amounts of capital (like Udvar-Hazy, and GE) made themselves incredibly wealthy by allowing airlines to convert those massive capex into much more manageable opex.

There is a saying is that “if it flies, floats, or f🤬ks, it’s a lot cheaper to rent it”. This applies to the airline industry in a big way.

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cyberentomology OP t1_isy9t3q wrote

Reply to comment by HobbitFoot in [OC] Where did it come from, where did it go? United Airlines 22Q3 Financials by cyberentomology

Right?

The highest state jet fuel excise tax in the nation is Kansas at 26 cents (followed by DC at 23.5, Arkansas at 22.8, and Indiana at 21). Although Atlanta also levies an 8.4% sales tax on it (half local and half state), which at current prices tacks on about 30-35 cents a gallon.

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cyberentomology OP t1_isy91le wrote

Reply to comment by ihavethebestmarriage in [OC] Where did it come from, where did it go? United Airlines 22Q3 Financials by cyberentomology

United doesn’t break it out in their reports (but Delta does, I just posted that one). Would definitely be interesting to see how that breaks down between airlines.

Delta’s passenger revenue is about 50% main cabin, 40% premium, and the rest is award travel and travel-related services.

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cyberentomology OP t1_isy6m33 wrote

Reply to [OC] Where did it come from, where did it go? Delta Airlines 22Q3 Financials by cyberentomology

Data Source: DAL 22Q3 Financial Results (October 13, 2022)

Tool: SankeyMatic

Some Interesting Observations:

  • They're getting jet fuel for only $3.53 a gallon... Best price of all of the big US airlines. I
  • Delta shows nearly $1.2B in refinery operations. In 2012, Delta acquired the recently closed Trainer Refinery in Pennsylvania from ConocoPhillips, as a way of insulating itself from volatility in refining margins. It can refine about 3 billion gallons of jet fuel a year. The refinery operation itself is breaking even, but shows on the bottom line in Delta having the lowest fuel cost of all three major US airlines.
  • Fleet-wide, they're averaging about 60 passenger miles per gallon.
  • Average annual (loaded) payroll per FTE is about $152K, significantly better than either AA or UA, and that's not counting another $12,000 per employee of profit sharing... Delta pays well!
  • Total Revenue is about 25 cents per passenger-mile. They keep 1.2 cents of that.
  • Taxes! The government is making about more money on the airline than the airline is making on the airline.
    • $267M in federal income tax (unusually high)
    • $198M in federal payroll tax
    • $226M in federal excise tax on jet fuel (24.4 cents/gallon) -- this is largely what funds the FAA.
    • State Taxes on jet fuel are unknown but state jet fuel tax per gallon in their US hubs - Delta seems to have hubs in high tax states:
      • Georgia (ATL) 7.5 cents plus local sales tax of 8.9% (31 cents)
      • Michigan (DTW): 3 cents
      • Utah (SLC): 2.5 cents
      • California (LAX): 2 cents
      • New York (LGA/JFK): 6.5 cents
      • Washington (SEA): 11 cents
      • Minnesota (MSP) : 15 cents
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cyberentomology OP t1_isxxmu6 wrote

Reply to [OC] Where did it come from, where did it go? United Airlines 22Q3 Financials by cyberentomology

Data Source: UAL 22Q3 Financial Results (October 18, 2022)

Tool: SankeyMatic

Some Interesting Observations:

  • They're getting jet fuel for only $3.80 a gallon... Hell of a deal, even better than American (which I posted yesterday)
  • Fleet-wide, they're averaging about 60 passenger miles per gallon. That's pretty damned efficient...
  • Almost double the profit margin of American, for similar scale of operations and fleet - Most of the difference is in the amount they pay to lease aircraft - United owns most of its fleet out of capex, while AA rents theirs out of opex. Good reasons for either approach.
  • Average annual (loaded) payroll per FTE is about $125K, significantly better than AA.
  • Revenue is about 20 cents per passenger-mile. They keep 1.5 cents of that. They make an average of about 20 bucks per passenger on a flight.
  • Taxes! The government is making about as much money on the airline as the airline is making on the airline.
    • $211M in federal income tax
    • $185M in federal payroll tax
    • $241M in federal excise tax on jet fuel (24.4 cents/gallon) -- this is largely what funds the FAA.
    • State Taxes on jet fuel are unknown but state jet fuel tax per gallon in their US hubs:
      • Texas (IAH) 20 cents
      • Illinois (ORD): 1.1 cents
      • California (SFO): 2.0 cents
      • Colorado (DEN): 4 cents
      • New Jersey (EWR): 13.56 cents
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cyberentomology OP t1_isu2crk wrote

Reply to [OC] Where did it come from, where did it go... American Airlines 22Q2 Financials by cyberentomology

Data Source: AAL 22Q2 Financial Results (July 21, 2022)

Tool: SankeyMatic

Some Interesting Observations:

  • They're getting jet fuel for only 4 bucks a gallon... Hell of a deal.
    • Fleet-wide, they're averaging about 58 passenger miles per gallon. That's pretty damned efficient...
  • Average annual (loaded) payroll per FTE is about $100K.
  • Revenue is about 18 cents per passenger-mile. They keep less than 1 cent of that.
  • No dividends, they've got a few billion in debt to pay down.
  • Taxes! The government is making more money on the airline than the airline is making on the airline.
    • $154M in federal income tax
    • $210M in federal payroll tax
    • $250M in federal excise tax on jet fuel (24.4 cents/gallon) -- this is largely what funds the FAA
    • State Taxes on jet fuel are unknown but state jet fuel tax per gallon in their US hubs:
      • Texas (DFW) 20 cents
      • Illinois (ORD): 1.1 cents
      • California (LAX): 2.0 cents
      • North Carolina (CLT): none (tiny inspection fee only)
      • Pennsylvania (PHL): 1.2 cents
      • DC (DCA): 23.5 cents
      • New York (LGA): 6.5 cents

Q3 results are due out any day now.

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