Charticle: Q2 Airline Earnings

Five of the six major U.S. airlines have now filed their Q2 earnings reports, so it’s time for another quick stop in the land of earnings analysis.

As we’ve said before, we love airline earnings data because the airlines report several fascinating non-GAAP financial performance metrics, such as total revenue per available seat mile (TRASM), load factor (the percentage of seats sold), and average fuel price per gallon.


Calcbench tracks all that stuff! Subscribers can even use our airline industry template to track the latest earnings data as the airlines file it!


For example, Figure 1, below, tracks TRASM for the six major U.S. carriers for the last five years. 



As you can see, the airlines suffered a disastrous decline in TRASM during the 2020 pandemic year, then made a remarkable climb back to normalcy in the first half of 2022. All six have flown onward at roughly the same levels since then, each one fluctuating in a relatively narrow band. 


Now compare TRASM to the more traditional metric of diluted EPS, shown in Figure 2, below. Much more volatile, but still showing a broadly similar tale of pandemic disaster, swift recovery, then ongoing stability — choppy stability, to be sure, but none of the six are trending downward. 



We’ll stop here, but analysts who follow the airlines can use Calcbench to give the same company-specific, quarter-by-quarter analysis across many more metrics: CASM (cost per available seat mile, the counterpoint to TRASM), load factor, fuel consumed, passenger revenue (as opposed to total revenue), and other disclosures. We track all the typical industry disclosures. 


You can conduct your own analytical adventure in the airline industry easily enough. If you are a Professional-level Calcbench subscriber and have installed the Calcbench Excel Add-In, all you need to do is download our airline industry template from DropBox. The template will then automatically pull the latest quarterly data as the airlines file earnings reports. 


You can also go the more manual route via our Recent Filings page. Search for the airline you follow, and then hit the “Earnings Model” feature on the right side of your screen. That will whisk you away to a spreadsheet-like interface that lists all the GAAP and non-GAAP metrics, but you’ll still need to do piecework to export all that into Excel and compile multiple quarters into a single file. 


So go ahead and upgrade to our professional-level subscription. Then sit back, relax, and enjoy the earnings analysis!

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