Flying is expensive. Many would say its just because of the rising fuel prices. But, that's not entirely true. An Airbus A320 tanks about 6400 gallons of fuel, which is equivalent to about 370 fully fueled SUVs. Comparing the fuel economy, it turns out the A320 is more economical. It gives out an impressing Per Person Fuel Efficiency of 107 miles per gallon of fuel. So besides fuel, there is so much that goes into your ticket price. We will take an example of a one hour flight from Point A to Point B. Let's have a look.
All the variables are rough estimates. They might change with time, but it should provide a good idea on why flying is expensive.
- Fuel: Assuming a fully loaded aircraft,the A320 would provide a per person cost for fuel to about $2.50.
- Crew Costs: The captain and the First Officer get paid about $88 in total for every flight hour. Flight attendants, 4 for a fully loaded A320, altogether make about $150 per flight hour. So, a per person crew cost comes up to about $1.50.
- Airport Charge: Depending on the airport and aircraft weight and category, the cost for airport widely varies. This charge is inclusive of the landing fees, gates, fuel truck, and other resources. A very rough estimate for this cost can be taken as $14 per passenger.
- Taxes: Although very country specific, there's a ton of different taxes- Domestic passenger service tax, Domestic flight segment Tax, Security Fee, International Tax, Customs Fee, Immigrations Fee, Civil Aviation Tax- just to name a few. We can expect about $15 as taxes for this flight.
- Aircraft Itself: The Airbus A320 costs about $107 million. Being a pretty durable aircraft, about $1783 needs to be paid per flight to pay off the initial price of the aircraft, which turns out to about $12 dollars per person.
- Maintenance: To keep the airplane safe and airworthy, airlines need airplanes to undergo regular maintenance. This includes labor, parts, inspections and component overhauls and engine restoration. All said, it costs about $14 per passenger.
- The Non-Flying Part: Airlines are a business which have their own costs. They need to pay administrators, executives, software engineers, marketers, consultants, customer service personnels, public relations, all along with rent, benefits, travel costs, utilities, and more. Its difficult to put an exact number, but it works out about $10 for each person.
There are other costs involved too, like hotels for crew, plane storage, insurance and some more. These estimates are on the better side, and considering a fully filled A320.
So now you know why your ticket costs so much. All said, Flying is Expensive. Well, it really isn't, and it's getting cheaper. To fly in a multi-million dollar aircraft across the country turns out to be more efficient than driving a car. The rise of modern aircrafts having composite structural materials, better aerodynamics, and efficient engines is the major reason for the drop in ticket prices.
Another important reason for cheaper tickets is Competition. Due to the rise of budget airlines, major carriers need to match their ticket price with those of their competitors. The more the demand, the more the competition, and the lesser the ticket price.
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