What is the biggest airline expense?

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. Labor accounts for about 31% of operational expenses, followed by fuel: 22% of operational expenses.



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By company revenue Delta Air Lines is the largest by revenue, assets value and market capitalization. American Airlines Group is the largest by number of employees.

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Based on 450 annual owner-operated hours and $6.00-per-gallon fuel cost, the BOEING 737-700 has total variable costs of $2,996,910.00, total fixed costs of $357,370.00, and an annual budget of $3,354,280.00. This breaks down to $7,453.96 per hour.

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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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Next time you board a flight, just imagine you're putting a $20 bill in the airline's tip jar. Profit per passenger at the seven largest U.S. airlines averaged $19.65 over the past four years—record-setting profitable years for airlines. In 2017, it stood at $17.75, based on airline earnings reports.

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Boeing 777-300 Private Charter Flights and Prices The average hourly rental rate of the Boeing 777-300 is around 28,500 USD per hour.

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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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How Much Is An Airline Pilot's Salary?
  • The bottom 25% earn up to $121,000 a year.
  • The middle 50% earn between $121,000 and $298,000 annually.
  • The top 25% earn between $298,000 and $768,000 annually.


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The average Delta Airlines pilot earns $192,000 with top-earners making $526,000. American Airlines pilots earn an average salary of $118,000, with some pilots earning in excess of $700,000. Most importantly, pilot salaries continue to increase.

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Which airline pays highest salary to pilots?
  • Southwest Airlines - $262,183 per year.
  • JetBlue Airways - $213,195 per year.
  • United Airlines - $208,387 per year.
  • Alaska Airlines - $199,298 per year.
  • Delta Airlines - $184,133 per year.
  • Hawaiian Airlines - $150,001 per year.
  • Sun Country Airlines - $124,072 per year.


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With today's fuel prices, it costs about $450,000 to fill up a Boeing 747, depending on your market. By contrast, the Gulfstream G280, a popular business aviation aircraft, costs around $8,000 to fill.

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How long does it take an airline to pay off a plane? Typically, larger airlines pay off their planes in about 5 to 7 years. Smaller and discount airlines may take up to a decade to repay their financing. Leases can run from a few years to the better part of a decade.

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