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Operating Expense
(1)
For a discussion of charges recorded in restructuring and other items, see Note 16 of the Notes to the Consolidated Financial Statements.
Fuel Expense. Including regional carriers under capacity purchase agreements, fuel expense increased $468 million because of a 6% increase
in our average price per gallon, despite a 2%
decrease in consumption. The table below presents fuel expense, gallons consumed and our average
price per gallon, including the impact of fuel hedge losses of $66 million during the year ended December 31, 2012:
The table below shows the impact of hedging and the refinery on fuel expense and average price per gallon:
35
Year Ended December 31, Increase
(Decrease) % Increase
(Decrease) (in millions) 2012 2011
Aircraft fuel and related taxes
$
10,150
$
9,730
$
420
4
%
Salaries and related costs
7,266
6,894
372
5
%
Regional carrier expense
5,647
5,470
177
3
%
Aircraft maintenance materials and outside repairs
1,955
1,765
190
11
%
Passenger commissions and other selling expenses
1,590
1,682
(92
)
(5
)%
Contracted services
1,566
1,642
(76
)
(5
)%
Depreciation and amortization
1,565
1,523
42
3
%
Landing fees and other rents
1,336
1,281
55
4
%
Passenger service
732
721
11
2
%
Profit sharing
372
264
108
41
%
Aircraft rent
272
298
(26
)
(9
)%
Restructuring and other items
452
242
210
NM
(1)
Other
1,592
1,628
(36
)
(2
)%
Total operating expense
$
34,495
$
33,140
$
1,355
4
%
Year Ended December 31, Increase
(Decrease) % Increase
(Decrease) (in millions, except per gallon data) 2012 2011
Aircraft fuel and related taxes
$
10,150
$
9,730
$
420
Aircraft fuel and related taxes included within regional carrier expense
2,101
2,053
48
Total fuel expense
$
12,251
$
11,783
$
468
4
%
Total fuel consumption (gallons)
3,769
3,856
(87
)
(2
)%
Average price per gallon
$
3.25
$
3.06
$
0.19
6
%
Average Price Per Gallon
Year Ended December 31, Increase
(Decrease)
Year Ended December 31, Increase
(Decrease) (in millions, except per gallon data) 2012 2011 2012 2011
Fuel purchase cost
$
12,122
$
12,203
(81
)
$
3.23
3.17
$
0.06
Fuel hedge losses (gains)
66
(420
)
486
0.01
(0.11
)
0.12
Refinery segment impact
63
—
63
0.01
—
0.01
Total fuel expense
$
12,251
$
11,783
468
$
3.25
3.06
$
0.19
MTM adjustments gains (losses)
27
(26
)
53
0.01
(0.01
)
0.02
Total fuel expense, adjusted
$
12,278
$
11,757
521
$
3.26
3.05
$
0.21