Home > Market Structures, Supply & Demand > What your airline fare is spent on

What your airline fare is spent on

Here is a great article, graphic and video from the Wall Street Journal. They look at an average of 100 passengers on a flight and what each passenger pays for.

29 cover fuel
20 cover salaries of airlines
16 cover ownership costs
14 cover Government fees taxes
11 cover Maintenance
9 cover other costs – catering etc
1 = Profit

But airline operating costs are off the charts compared with other industries. In a business where much of the work is done outside, routine storms can eat into margins. And there are many moving parts to flying people through the air, and many safety costs required by regulation.

While ticket revenue pays the bulk of these costs, “ancillary revenue” supplements the flight by another $18 per person on a 100-passenger flight. That includes fees for checked baggage, seat assignments, ticket penalties and revenue from cargo.

To go to the full article, graphic and video – click link below:

How airlines spend your airfare

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