U.S. scheduled passenger airlines posted a near break-even after-tax result in the second quarter as higher fuel costs squeezed margins and sharply reduced year-on-year earnings. June systemwide traffic reached 87.5 million passengers, but that was 3.7% below the June 2024 record, underlining softer demand from the prior peak.
Higher fares helped carriers offset part of the fuel burden, but they also left travellers facing a costlier market. The second-quarter performance points to a sector that remained broadly profitable on an operating basis while seeing after-tax results narrow significantly as fuel prices rose faster than revenue gains.
The June traffic figure suggests volume stayed high by historical standards, even as growth stalled against last year’s peak. That leaves airlines balancing yield management against passenger affordability, with pricing power supporting revenue but limiting the room for stronger traffic growth.