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Customers experiencing digital benefit from airlines' increased profit margin

Thanksgiving travel will result as many as 25 million passengers on U.S. airlines in 2014, according to industry trade organization Airlines for America.

November 18, 2014

Thanksgiving travel will result as many as 25 million passengers on U.S. airlines in 2014, according industry trade organization Airlines for America.

The 24.6 million expected passengers for the 12-day travel period is a 1.5-percent increase from the 24.2 million projected in 2013. The increase will enable airlines to add seats, pay down debt and increase investments in customer experience, A4A said. The Thanksgiving travel period runs from Friday, Nov. 21, through Tuesday, Dec. 2.

Although airline margins are "well below" the S&P 500 average of 9 percent, the reported net profit margin of 5.7 percent has allowed companies to reduce $2.4 million of debt this year. Reported net earnings are up from $4.5 billion in 2013, at $6.8 billion.

Travelers are experiencing some of the benefits of increased margins and the reported increase in operating revenues and capital expenditures for 2014. The financial improvements have resulted in more Wi-Fi options on domestic and international flights and advancements in technologies for website and kiosk functionality, A4A said.