DOW JONES NEWSWIRES Operating margin for the U.S. airlines industry hit the highest level since at least 2002 in the second quarter, the U.S. Department of Transportation reported Monday, as the industry continues to recover from 2009's recessionary woes and benefits from new fees. Airlines have seen a bounce in recent quarters after slashing fares last year to cope with a steep drop in business and consumer travel demand. The previous year they had struggled with fuel-price volatility. Passenger revenue per available seat mile, a key profitability metric, jumped 18%, amid the higher fares. That helped the six network carriers post an operating margin of 9% in the April-to-June period, the largest since the second quarter of 2007, according to the agency's Bureau of Transportation Statistics. The year-earlier second quarter had a small operating loss. Low-cost carriers' operating margin rose to 9.9% from 7.2% while it dropped to 6.1% from 7% for regional carriers. Overall, Alaska Air Group Inc.'s (ALK) namesake carrier posted the biggest operating margin this past quarter at 15.5%, followed by Delta Air Lines Inc. (DAL) at 11.2%. Meanwhile, baggage fees increased one-third in the second quarter to $892.8 million and reservation-change fees fell 2.1% to $594 million. Carriers have been increasingly adding fees--such as for bags--in lieu of big fare hikes. -By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com
