For the fifth year in a row, the first quarter has been an unprofitable one for the airline industry.
The Department of Transportation’s Bureau of Transportation Statistics said Monday that losses for U.S.-based carriers hit $1.3 billion on $70.7 billion in operating revenue in the first quarter of 2024. That’s worse than the same quarter last year, when losses were $876 million on $68 billion in revenue.
The first quarter tends to be the weakest quarter of the year for airlines because people don’t travel as much, and every first quarter since 2020 has notched losses. This is despite the BTS noting last week that the number of February passengers enplaned on U.S. airlines this year was a seasonally-adjusted record high.
Though the International Air Traffic Association said earlier this month that this should be an especially profitable year for its members, the group also noted that costs are going up for things like fuel and labor.
The airline industry is getting more competitive as various carriers fight for market share. One of the latest trends in the business is larger, older so-called “legacy” airlines moving in on the low-cost fare category long dominated by budget airlines.