The total number of scheduled domestic and international passengers on U.S. airlines in June declined by 6.2 percent from June 2008, dropping by 4.2 million to 63.6 million, according to the U.S. Department of Transportation (DOT), making the 30-day period the 15th consecutive month with a decrease in passengers from the prior year.

The scorecard for U.S. carriers was no better in August, as the Air Transport Association (ATA) reports that passenger revenue, based on a sample group of carriers, fell 21 percent in August 2009 versus the same month in 2008, producing the 10th consecutive month in which passenger revenue declined from the prior year.

ATA said six percent fewer passengers traveled on U.S. airlines in August while the average price to fly one mile fell 17 percent, a slight improvement over the 18 percent year-over-year yield decline observed in July. The revenue declines extended beyond domestic U.S. routes to the trans-Atlantic, trans-Pacific and Latin markets.

“The industry continues to see a reduction in the number of air travelers, despite double-digit declines in fares. While there are signs that improvement may be on the horizon, regrettably the demand for air travel remains weak,” said ATA President and CEO James C. May.

There was a bit of positive news for the U.S. airline industry as the network, low-cost and regional airlines all reported improved operating margins in the second quarter of 2009, the DOT also said.

Operating margin measures profit or loss as a percentage of the airline’s total operating revenue. Network carriers as a group posted their smallest operating margin loss for any quarter since September 2007 while the low-cost and regional groups reported profit margins. The low cost group’s profit margin of seven percent was its largest since the second quarter of 2007 while the profit margin of 7.2 percent for regional carriers was its largest since the fourth quarter of 2006.

The 21 U.S. air carriers covered in the DOT report achieved their first overall profitable operating margin since the third quarter of 2007. Five of the 21 carriers reported loss margins while the remaining 16 reported profit margins. The network group has reported loss margins for seven consecutive quarters, but the modest -0.5 percent loss margin in the most recent quarter was the smallest.

In the April-to-June period, three of the seven network air carriers, the group with most of the industry’s largest airlines, reported loss margins. American Airlines reported the largest loss margin of the group, followed by Continental Airlines and Delta Air Lines.

The seven network airlines spent 21.7 percent of their operating expenses in the second quarter of 2009 on fuel. The spent 2.92 cents per available seat-mile (ASM) for fuel in the second quarter of 2009, down from 3.08 cents per ASM in the first quarter of 2009 and down from 2.23 cents per ASM from the second quarter of 2008.

Network airline Delta and regional carriers American Eagle and Horizon Air spent the most for fuel per ASM while regional carriers ExpressJet and SkyWest Airlines and network carrier United Airlines spent the least.

The loss margin of -0.5 percent for the seven long-haul air carriers in the second quarter produced a combined operating loss of $111 million. In the second quarter of 2008, these same carriers reported a loss margin of -4.5 percent with a loss of $1.8 billion.

The top three operating profit margins were reported by low-cost carriers Allegiant Air, Spirit Airlines and regional carrier Comair. Low-cost carrier Virgin America, American Air and ExpressJet reported the largest operating loss margins.

U.S. air carriers carried 5.9 percent fewer domestic passengers than in June 2008. International passengers on U.S. carriers decreased 8.5 percent.

For the first six months of 2009, the number of scheduled domestic and international passengers on U.S. airlines declined by 8.9 percent from the same period in 2008, dropping to 345.5 million, 33.7 million fewer than a year earlier, and the lowest January-to-June total since 2004. U.S. airlines carried 8.8 percent fewer domestic passengers and 9.6 percent fewer international passengers in the first half of 2009 than during the same period in 2008.

Southwest Airlines transported more passengers (50 million) during the first six months than any other U.S. airline while American Air carried more international passengers (9.6 million) than any rival airline. Southwest transported nine million passengers in June 2009. That same month, American carried 1.7 million international passengers, the most of any U.S. airline.

U.S. airlines carried 42.4 million scheduled international passengers during the first six months of 2009, down 9.6 percent from the 46.8 million carried during the same period in 2008. In June, the airlines carried 7.7 million scheduled international passengers, down 8.5 percent from the number of passengers carried during June 2008.

More passengers boarded planes in the first six months of 2009 at Atlanta Hartsfield-Jackson International than at any other U.S. airport; Miami International led the pack in transporting international travelers.

Meanwhile, the U.S. airline industry collected almost $670 million in baggage fees in the second quarter of 2009, up 18.2 percent from the $566 million collected in the first quarter of 2009 and up 276 percent from the $178 million collected in the second quarter of 2008.

Beginning in the second quarter 2008, most of the scheduled passenger carriers began charging for the first and second bags checked by passengers. Previously, additional charges were not applied until the third bag was checked.

American collected $118.4 million in the second quarter of 2009, the most of any carrier although Delta was only $86,000 behind in baggage fees revenue.

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