AIR CARRIER REAL RETURN ON ASSETS

AIR CARRIER REAL RETURN ON ASSETS

Real Return on Assets for Large U.S. Air Carriers (quarterly data, not seasonally adjusted)

Real Return on Assets for Large U.S. Air Carriers (quarterly data, not seasonally adjusted)

NOTE: Data for DHL, which has not reported for second quarter 2001, are excluded for all periods for comparability over time.

Return on assets is a measure of the profitability of investment adjusted for inflation. Improving profits depends on a combination of holding down costs while growing revenue.

Percent     Q2 00         Q2 01    
Return over last quarter  5.44 -2.14
Return over last quarter change from same quarter previous year -2.02 -7.58
Return over last year  3.11 -0.59
Return over last year change from same quarter previous year -1.28 -3.69

NOTES: Data for the last year are preliminary.

The current value is compared to the value from the same period in the previous year to account for seasonality.

Return on assets is the ratio of net income to the average of beginning- and end-of-period assets for large air carriers. When net income and assets are deflated using the average CPI, the nominal rate of return is converted into a real rate of return.

The data include profits of both foreign and domestic operations for U.S. air carriers with more than 20 million dollars in annual operating revenue.

SOURCES: U.S. Department of Transportation, Bureau of Transportation Statistics, Air Carrier Financial Statistics data; and U.S. Department of Labor, Bureau of Labor Statistics, available at: http://www.bls.gov/cpihome.htm.