The biggest costs for airlines include labor and and fuel. Labor accounts for about 31% of operational expenses, followed by fuel: 22% of operational expenses.
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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.
The aviation sector has two main flight categories: civil and military. In simple terms, civil aviation refers to all aviation that is not connected to the military. This includes private and commercial air travel, regardless of whether flights carry passengers, cargo, or a combination of the two.
Airlines make the majority of their revenues from travelers, though they can also profit from affiliations with travel partners and credit card companies.