2 during the steady growth from 2013 to 2014 us

while airline revenue rose only 2.2%.

During the steady growth from 2013 to 2014, US airline revenue as a percent of GDP ranged
from 1.16% to 1.17%. That percentage dropped to 1.14% in second quarter 2015.

US Airline Industry System Baggage, Reservation
Change and Miscellaneous Fees
Side-to-Side

US Airline Industry System Baggage, Reservation
Change and Miscellaneous Fees
Side-to-Side

During the second quarter of 2015, ancillary revenue accounted for 8.0% of total revenue. Ten
years ago, ancillary revenue accounted for less than 3.0% of revenue.

These fees contributed $106 million in revenue during the second quarter, with most of it from
value carriers’ domestic operations. Network carrier ancillary revenue grew less than 1% year-
over-year after making significant gains over the past 10 year.

Delta collected $22.48 per segment passenger, the highest among network airlines.

US Airline Industry System CASM by Group (Excluding
Regional Affiliates)
Side-to-Side

US Airline Industry System CASM by Group (Excluding
Regional Affiliates)
Side-to-Side

US airline system wide unit cost declined 12.6% year-over-year to 11.5¢ during second quarter
2015.

Network carrier system cost slid 12.6%, falling from 13.5¢ to 11.8¢. (Alaska, American, Delta,
Hawaiian, United, US Airways).

US Carrier System Labor Unit Costs
Side-to-Side

US Carrier System Labor Unit
Costs
Side-to-Side

The labor unit cost is increasing at a greater rate for the value carrier group. The two largest
value airlines, Southwest and JetBlue, reported labor unit cost increases exceeding 7% year-
over-year.

Delta’s labor cost per ASM was down 14.1% from 2014, when the carrier had the highest labor
cost in the US industry.

US Carrier System Average Stage‑length vs. CASM
Side-to-Side

US Carrier System Average Stage‑length vs. CASM
Side-to-Side

The three largest network airlines all reported the highest domestic unit costs. (Delta,
American, United).

Delta had the highest unit cost for the group (and the highest unit revenue), its unit cost
decreased 15.0% to 13.3¢. Despite having the smallest fuel cost decline at only 14.9%, Delta’s
overall unit cost reduction of 15.0% was the highest among network airlines.

US Domestic CASM Breakdown by Airline – Network
Carriers
Side-to-Side

US Domestic CASM Details for Individual Carriers
Side-to-Side

World Capacity Change
Side-to-Side

World Capacity Change
Side-to-Side

Industry Capacity, measured in available seat miles (ASMs), increased 6.3% worldwide, and
every major world region experienced ASM growth at or above 4.6%. Available seats grew 5.5%
and departures increased only 3.1%.

Ten years ago, the average scheduled flight had 114 seats and flew only 685 miles. If similar
growth rates continue over the next 10 years, the average aircraft will depart with 167 seats and
fly 964 miles. Which is a massive change.

US Carrier Share of Passenger
Revenue
Side-to-Side

US Carrier Share of Passenger
Revenue
Side-to-Side

Value carriers continue to expand internationally, with a primary focus on Latin American
markets. There is a wide variation of revenue exposure among the value carriers, from JetBlue to
Southwest, in how much they serve international destinations.