Air Transportation

Air transportation expenses of $2,626 million in 2009 decreased by $421 million, or 13.8%, from last year. Domestic air expense decreased $322 million, or 13.8%, compared to last year. Lower fuel prices saved $186 million in expenses, while lower mail volumes drove most of the remaining expense reduction.

For 2009, international air expense decreased $99 million, largely due to lower volumes and a decrease in foreign postal transactions fees compared to last year.

Air transportation expenses for 2008 were $3,047 million, an increase of $57 million, or 1.9%, compared to 2007. Domestic air transportation expenses for 2008 were $2,336 million, a decrease of $57 million, or 2.4%, compared to 2007. International air expenses increased $114 million, primarily due to the shift from surface to air delivery resulting from the elimination of the Global Economy service offering.