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Airlines pay for fuel, employees, aircraft, maintenance, airport access and air-traffic services, among other operating costs. Fuel is a large bill, but it is not the whole bill: IATA projected that fuel would account for 25.7% of global airline operating expenses in 2026, while labor was projected at 28% of total costs. Those are industry forecasts, not a breakdown of any one airline or flight.
What costs do airlines pay to operate flights?
An airline’s expenses are spread across the operation that makes flights possible, not just the minutes an aircraft spends in the air. The exact mix depends on the carrier, its fleet, routes, accounting definitions and reporting period.
- Fuel: Jet fuel prices, aircraft fuel efficiency, distance flown and purchasing practices shape this expense.
- Labor: Pilots, cabin crew, mechanics, ground staff, customer service and corporate employees all contribute to payroll and related costs.
- Aircraft ownership: Airlines may lease aircraft and engines, finance them, or account for depreciation and other ownership expenses.
- Maintenance and repair: Inspections, repairs, engines, replacement parts and maintenance labor are needed to keep aircraft available and safe to operate.
- Airport and air-navigation charges: Landing fees, airport rent and en-route charges vary by location, airport rates and flight activity.
- Other operating costs: Airlines also pay for a range of services and operational needs; the categories and treatment depend on the company’s accounts.
These categories interact. For example, a shortage of available aircraft or parts can mean more maintenance spending and less efficient aircraft in service, while a busier schedule can increase airport charges.
How much do fuel and labor account for?
IATA’s December 2025 industry outlook projected total airline costs of $981 billion in 2026. It forecast $252 billion in fuel spending, equal to 25.7% of operating expenses, and projected labor at 28% of total costs. These are IATA forecasts for the global industry, not audited totals or percentages for every airline.
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A separate IATA estimate in its 2026 Annual Review put airline labor costs at $260 billion in 2025, up 7.6% from 2024 and equivalent to 26.0% of operational expenses. That is an estimate for 2025, not the same measure or year as the 2026 forecast. The distinction matters: a forecast and a retrospective estimate should not be combined as if they were one accounting snapshot.
Fuel is also highly variable. IATA’s 2024 outlook projected $291 billion in fuel expense, or 31% of operating costs, for that year. It is a different forecast period from the 2026 figures, not evidence that fuel’s share is fixed or that one figure supersedes the other.
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Why aircraft and maintenance costs can rise
Owning or leasing aircraft is only part of the cost of having a usable fleet. Airlines also need engines, spare parts, maintenance facilities and qualified mechanics. When aircraft deliveries are delayed, a carrier may have to keep older, less fuel-efficient planes in service for longer. Parts shortages and maintenance-capacity constraints can increase repair expense, ground aircraft or require extra engine leasing and spare aircraft.
IATA estimated that supply-chain challenges cost the airline industry more than $11 billion in 2025. The estimate reflects an industry-wide problem; it does not specify a uniform cost per airline or flight. IATA also cited record-high aircraft lease rates as a cost pressure in its December 2025 outlook.
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Why airport costs differ by route and airline
Airport rent, landing charges and air-navigation fees depend on where and how an airline operates. An airport can change its rates, and a carrier with more departures may incur higher total charges even if the rate itself is unchanged. In its 2024 filing, American Airlines attributed increases in landing fees and rent partly to airport rate increases and more departures. That company-specific example illustrates a cost driver; it is not a global average.
Why there is no single cost to fly one passenger
Industry expense totals cannot be divided into a universal price for one seat or one flight. Airlines operate different aircraft, routes and schedules; their expenses are reported under different categories; and a flight’s cost depends on conditions such as distance, aircraft, fuel use and airport charges. The figures available do not establish an itemized cost for a particular flight or passenger.
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Nor does an airline’s operating cost equal the fare a traveler pays. A fare is the passenger-facing price of a ticket. Operating costs are the airline’s expenses. There is no established one-to-one allocation in which a specific ticket price corresponds to a fixed share of each cost category.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to compare airline cost figures
Before comparing two numbers, check what they measure. Reports may cover different years, geographies, airlines or expense categories. Even cost-per-capacity measures use different denominators:
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- Cost per available seat mile (ASM): A seat-capacity measure based on available passenger seats multiplied by miles flown.
- Cost per available tonne kilometer (ATK): A capacity measure based on available weight and distance.
ASM and ATK are not interchangeable. A carrier may also report unit costs excluding fuel or special charges, so read the definition attached to the figure. IATA’s 2024 outlook reported non-fuel costs per ATK, while U.S. airline filings may use cost per ASM; comparing those directly would mix both the scope and the denominator.
Regional figures also need their period and methodology. IATA’s 2024 reporting put fuel at 36.3% of costs in Latin America and the Caribbean and 25.5% in North America. Those are regional figures for the period and method covered by that reporting, not current universal shares for every airline in either region.
What airline costs mean for passengers
Operating costs help explain why airlines pay for much more than fuel, but they do not reveal what any one traveler’s ticket should cost. The industry figures describe aggregate expenses or forecasts; a passenger’s fare is a separate price, and the available data do not assign an individual ticket to a precise slice of fuel, labor or other costs.
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