1. Financial Review & Thanksgiving Travel Forecast
John P. Heimlich
Vice President & Chief Economist
Nov. 7, 2012

2. Price of Jet Fuel Running Higher in 2012 Than in Record 2011
Price per Gallon (Gulf Coast Jet Fuel) Price per Barrel (Five-Day Moving Average)
$145
$3.08
$3.00
$135
$2.17
$125
$115
$1.02
$105
$0.58
$0.54
$95
$85
$75
2011
YTD 2012
1991-1995
1996-2000
2001-2005
2006-2010
1-Jul
28-Nov
2-Apr
2-May
2-Feb
3-Jan
29-Oct
1-Jun
31-Jul
30-Aug
29-Sep
3-Mar
28-Dec
WTI Brent Jet
Source: A4A and EIA (for WTI and Brent crude oil and U.S. Gulf Coast jet fuel)
2 airlines.org

3. So Far in 2012, U.S. Passenger Airline Industry* Results Inferior to 2011
Despite 5.6% More Revenues, 6.2% Higher Costs Reduced Profit Margin to 0.2%
YTD 3Q12 vs. YTD 3Q11 % Better/(Worse)
Net Profit Margin (%)
Operating Revenues 5.6
Operating Expenses (5.3) 0.9
Fuel (34%) (6.0)
Wages and Benefits (23%) (5.3)
Landing Fees & Rents (5%) (2.5)
Maintenance/Materials (6%) (9.4)
Depreciation & Amortization (4%) (3.0) 0.2
Other (28%) (4.5)
Other Income/(Expenses) (32.3)
Subtotal Expenses (6.2)
YTD 3Q11 YTD 3Q12
* A4A analysis of reports by Alaska, Allegiant, American, Delta, Hawaiian, JetBlue, Southwest, Spirit, United and US Airways
3 airlines.org

4. After Three Quarters, U.S. Airline* Earnings Equal 0.2 Pennies per Dollar of Revenue
Weak Profit Margin in Stark Contrast to Other Fortune 500s
U.S. Airlines* YTD 3Q12 U.S. Airlines* ex. AMR YTD 3Q12
Net Income ($ Millions) 262 Net Income ($ Millions) 2,421
Net Margin (Percent) 0.2 Net Margin (Percent) 2.7
Ford Motor Co. YTD 3Q12 Apple Inc. YTD 3Q12
Net Income ($ Millions) 4,067 Net Income ($ Millions) 28,689
Net Margin (Percent) 4.2 Net Margin (Percent) 26.0
* A4A analysis of reports by Alaska, Allegiant, American, Delta, Hawaiian, JetBlue, Southwest, Spirit, United and US Airways
4 airlines.org

5. Thus Far in 2012, U.S. Airlines Have Earned 50 Cents per Enplaned Passenger
Albeit Slim Margins Helping Carriers Recover from Massive 2001-2010 Deficit
Net Income (Billions) Net Income per Enplanement
$20 $2
$0.77 $0.50
$0.6 $0.3
$0 $0
($20) ($2)
($40) ($4)
($60) ($6)
($62.9)
($80) ($8)
($100) ($10) ($9.22)
2001-2010 2011 YTD 3Q12 2001-2010 2011 YTD 3Q12
Sources: For 2001-2011, A4A analysis of DOT Form 41 data reported by U.S. airlines for which passenger revenue constitutes at least 25 percent of operating revenues;
for 2012, A4A analysis of earnings reports of Alaska, Allegiant, American, Delta, Hawaiian, JetBlue, Southwest, Spirit, United and US Airways
5 airlines.org

6. A4A Projects U.S. Airlines to Carry Nearly 24M Thanksgiving* Passengers in 2012
Up Slightly from 2011 But Still 10 Percent Below 2006-2007 Peak
Onboard Passengers (Millions) Estimated to Fly on U.S. Airlines over 12-Day Holiday*
30
26.2 26.2
25 23.9 23.2 23.6 23.6 23.7
22.5
20
15
10
5
0
2005 2006 2007 2008 2009 2010 2011 2012F
Source: A4A, selected sample carriers and DOT T100 segment data * In 2012: Friday, Nov. 16 through Tuesday, Nov. 27
6 airlines.org

7. A4A Projects Daily Thanksgiving Passenger Volumes to Range from 1.3M to 2.4M
Sunday Return, Wednesday Before, Monday Return Expected to Be Top Three
Projected Passengers (Millions)
2.4
2.2 2.3 2.3
2.2
2.0 1.9 2.0
1.8 1.9
1.6
1.3
#4 #10 #7 #8 #5 #2 #12 #11 #6 #1 #3 #9
Sun., 11/18
Sun., 11/25
Fri., 11/16
Fri., 11/23
Wed., 11/21
Tue., 11/20
Tue., 11/27
Thu., 11/22
Sat., 11/17
Mon., 11/19
Sat., 11/24
Mon., 11/26
Source: A4A, selected sample carriers and DOT T100 segment data * In 2012: Friday, Nov. 16 through Tuesday, Nov. 27
7 airlines.org

8. Financial Pressures Mean Further Cuts in Scheduled Domestic Air Service in 2013
As Rising Costs Outpace Revenues, the USA Continues to See a Smaller Airline Industry
“We’ve lost a lot of markets that were served only with the 50-seat (aircraft). We’d like more flights.
But you’re not going to have any flights if the airlines don’t make money, so we understand their
predicament.” (Larry Cox, president and CEO of the Memphis-Shelby County Airport Authority)
─ “Regional airlines face closings, bankruptcy,” USA Today (Aug. 20, 2012)
(17.2)
Sched. Domestic Flights
(2.4)
(13.1)
Sched. Domestic Seats
(1.3)
1Q13 vs. 1Q07
(9.9)
1Q13 vs. 1Q12 Sched. Domestic ASMs
(0.1)
Source: Innovata (via Diio Mi) published schedules as of Nov. 2, 2012; an available seat mile (ASM) is one seat flown one mile
8 airlines.org

9. U.S. Airlines Also Cutting Capacity in Many Markets Outside North America
Change (%) in Scheduled ASMs* from USA to non-North America: 1Q 2013 vs. 1Q 2012
8.8
3.8
(1.0)
(8.3) (9.1)
Carib. & LatAm Europe ME & Africa North Pacific South Pacific
* Scheduled U.S. airline flights departing U.S. airports for other continents; an ASM is one seat flown one mile
Source: Innovata (via Diio Mi) published schedules as of Nov. 2, 2012
9 airlines.org

10. Improved Airline Finances Have Translated to 21 Consecutive Months of Job Growth
After Years of Losses, U.S. Airlines Have Also Been Able to Reinvest in Equipment
Airline Jobs Added in 21 Months in a Row Aircraft Capital Spending on the Rise
YOY Change (%) in Full-Time Equivalent Employees Average Annual Estimated Aircraft/Engine CapEx (Billions)
4
$16.9
2
0
$9.7
(2)
$9.2
(4)
$6.6
$5.8
$5.8
$5.7
$4.8
$4.2
(6)
$3.4
(8)
2011
2007
2008
2009
2010
2012
2013
06-09
00-01
11
12F
13F
02
03
04
05
10
Source: BTS for U.S. scheduled passenger airlines Source: Bank of America Merrill Lynch airline equity research (Jan. 5, 2012)
10 airlines.org

11. www.airlines.org