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What are the top 3 costs for most airlines?

What Are The Biggest Expenses For Airlines?
  • Cost of buying or leasing aircraft.
  • Fuel.
  • Labor costs.
  • Catering.
  • Aircraft maintenance.
  • Airport ground handling charges.




In 2026, the three largest operating expenses for global airlines remain Fuel, Labor, and Aircraft Maintenance/Leasing. Fuel is the most volatile and significant cost, often accounting for 25% to 35% of total expenditures; as oil prices fluctuate, so do airline profit margins. Labor (salaries for pilots, flight attendants, and ground crew) is the second major cost, representing roughly 20% to 25% of the budget. The third pillar is Aircraft Ownership and Maintenance, which includes the massive monthly lease payments for planes like the A350 or 787, as well as the "heavy checks" required by aviation authorities. In 2026, many airlines are also seeing a rise in "Environmental Levies" as a fourth significant cost, but the "Big Three" remain the primary drivers of the ticket prices you see on travel sites today.

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Generally, the airlines' costs are divided into three categories; direct operating costs, indirect operating costs and overheads.

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Direct costs are out-of-pocket expenses: fuel, oil, and landing fees. The amount depends directly on how much the aircraft is flown.

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While you may think that airline tickets are pricey, much of the fare goes to cover costs. The biggest costs for airlines include labor and and fuel.

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The three major operating expenses of airlines are fuel costs, labor costs, and maintenance costs.

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Airlines make the majority of their revenues from travelers, though they can also profit from affiliations with travel partners and credit card companies.

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Low-cost airlines specialise in keeping the costs down, minimizing their operating costs by having single aircraft fleets, and without some of the more traditional amenities (like in-flight meals) included in the fare, meaning they can offer lower fares due to their lower cost of operating – essentially these cost- ...

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Airlines get an average of just under $189 of revenue for each passenger they fly, which include the base fare, ancillaries such as bag fees, fuel surcharges, and revenue for any cargo carried.

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The cost per gallon of fuel in September 2022 ($3.49) was up 2 cents (0.6%) from August 2022 ($3.47) and up $1.53 (78.1%) from September 2019. Total September 2022 fuel expenditure ($4.89B) was down 6.3% from August 2022 ($5.22B) and up 69.2% from pre-pandemic September 2019.

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Southwest Airlines is the world's largest low-cost carrier.

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