Low-cost and regional airline groups reported operating profits in the first quarter of 2010 while the network airline group returned to a loss after one profitable quarter, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported in a release of preliminary data.

From January to March, the airlines collected $769 million in baggage fees and $554 million from reservation change fees. Other ancillary fees, such as revenue from seating assignments and on-board sales of food, drink, pillows, blankets, and entertainment are reported in a different category with other items.

Airlines also reported revenue of $534 million from other ancillary revenue, from passengers and from other sources. This revenue category includes revenue from frequent flyer award program mileage sales and pet transportation fees. Total first quarter 2010 airline revenue from all ancillary sources was $1,857 million, with Delta reporting the most, $592 million.

The combined passenger fees and ancillary revenue from other sources constituted 6.2 percent of the total revenue of the 28 carriers that reported receiving ancillary revenue. Spirit Airlines’ reported the largest percent of operating revenue from ancillary revenue of any carrier, 21.7 percent.

The six network carriers posted a loss margin of 0.7 percent in the first quarter with a combined operating loss of $163 million.  In the first quarter of 2009, these carriers reported a loss margin of 4.0 percent with a loss of $867 million.

The seven low-cost carriers reported a 2.4 percent profit margin with profits of $115 million. The six reporting regional carriers posted a 3.9 percent profit margin of $60 million.