AOMlover
Topic Author
Posts: 1191
Joined: Sun Jul 22, 2001 6:03 pm

Cost Of A Flight For An Airline

Mon Sep 12, 2005 12:08 am

Hello !
I have absolutely no idea of the cost of a flight for an airline.
Well of course it depends on the distance, aircraft, fuel cost, working cost, etc...

For example could someone give me an idea of how much does a flight such as CDG-JFK with a 777 cost for an airline flying this route ?
Thanks
 
Cory6188
Posts: 2609
Joined: Mon Feb 02, 2004 12:29 am

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 12:59 am

That's a really good question - one that I've always wanted to know the answer to.
 
nkops
Posts: 2155
Joined: Fri Jun 03, 2005 10:09 am

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 1:10 am

Probably no 2 flights cost the same.... as you said... you have to factor in fuel, crew cost, maintenance costs , etc. The fuel itself can change depending on winds, filed flight plan and if alternate needed... I'm sure someone may be able to give you an approximate or average though
:evil:
 
Thorben
Posts: 2713
Joined: Fri Sep 09, 2005 10:29 pm

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 1:14 am

These costs are calculated by internal accounting, which is mostly top secret. Besides obvious issues such as fuel, crew, meals, airport fees, etc., you would also have to take into account usage of the plane, share of marketing costs, share of crew instruction, and other overhead costs. Makes the whole thing very difficult.

I read some figures in a German aviation magazine some time ago. These were based on costs per offered seat-mile. I think Emirates was at 9 cent, Qantas at 12 cent, and British Airways at 15 cent.

It is all very complicated.
France 1789; Eastern Germany 1989; Tunisia 2011; Egypt 2011
 
N770WD
Posts: 89
Joined: Sat Sep 11, 2004 10:50 am

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 1:40 am

Some rough numbers to think about, in US dollars for a typical legacy --

Fuel Burn B777 CDG-JFK would be about 115,000 pounds, plus or minus. At $2 per gallon enplaned, that's about $34,000 of fuel.

Maintenance for recent B777 might average $800 per block hour for an airline with global capabilities, plus overhead allocation for inspectors, parts warehousing, and the like. So figure $7,000 in total maintenance.

Navigation and overflight fees would be about $2,000. Landing fees at JFK are roughly $3,000 for a heavyweight B777.

Stations fees would have to include a departing passenger fee at CDG (figure $10 per passenger), an arriving passenger fee at JFK (say $14), security costs of $1,000, cleaning and catering preparation (galley loading and such) of $2,000, and cabin amenities (blankets, pillows, IFE content and such) of $1,500 per flight. Add catering of roughly $25 per economy passenger, $75 per business passenger and $100 per first class passenger, including liquor and spoilage. So with 200 passengers (5/50/145) station and passenger costs would be about $18,000.

Monthly lease rates on a B777 might average $800,000 per month. Add $100,000 per month for insurance and spares and total aircraft cost is $900,000. The aircraft will run 28 rotations in a typical month (assuming 1 day each two weeks for maintenance) so allocated aircraft rent and insurance per flight is $16,000 per flight.

For crew cost, a US airline would staff CDG-JFK with an augmented crew (probably two captain rank, one first officer rank). Captains make $250,000 per year (being the most senior) including basic benefits, first officers $125,000, and a cabin crew of ten averaging $50,000 per year with basic benefits (again, the most senior are flying the route). That's a total monthly cost of $93,750 per crew. Assume five crews plus a reserve are staffed to the route. That's $8000 per segment in crew costs. Note this is just the direct trip cost -- fully allocated trip costs can be much, much more depending on the company's labor agreements.

So the direct trip costs might start at $90,000 each way, not including overhead. That overhead is hard to judge -- it needs to include things like airport lounges at each station, maintenance and quality assurance overhead, and the like, not just promotion, sales and executives. But a large airline like Air France or American is spreading that overhead across thousands of flights.
 
1MillionFlyer
Posts: 1937
Joined: Wed Sep 08, 2004 8:55 am

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 2:02 am

Quoting N770WD (Reply 4):
Some rough numbers to think about, in US dollars for a typical legacy

That is the best breakdown I have ever seen on A.net! You need a higher RR.

Don't forget hotels for the crew and other incidentals would come to about 2,000 USD more.

so 92,000 Each way or so. An average 3 class configurtion 777 is 230 seats and the trip length is 3158 NM so that is 3158 x 230 seats /92000 for a CASM of 12.66 cents.

CASM (Cost per available seat mile) is the main "yardstick" to measure cost in the Airline revenue managment arena.

[Edited 2005-09-11 19:05:31]
Golf Foxtrot you are cleared for departure
 
NASOCEANA
Posts: 277
Joined: Fri Jul 29, 2005 3:40 pm

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 2:23 am

I believe a fully loaded FedEx 727-200 flight is valued at about $1 million each time it takes off. Don't know the exact breakdown, but I think each position is valued at around $70-$75,000 each or $900,000 + fuel and crew wages.

NASOCEANA
B777 greatest Airliner ever built!
 
N770WD
Posts: 89
Joined: Sat Sep 11, 2004 10:50 am

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 6:55 am

Quoting 1MillionFlyer (Reply 5):
Don't forget hotels for the crew and other incidentals would come to about 2,000 USD more.

You are right, I forgot about that. Per diems and hotel costs can average $200 per night per person on the low end, $300-$400 in some locations. A crew of 13 would add at least $2,600 in ground costs.
 
GMUAirbusA320
Posts: 203
Joined: Thu Sep 02, 2004 8:52 pm

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 10:52 am

Quoting N770WD (Reply 4):
Some rough numbers to think about, in US dollars for a typical legacy --

Your quote is not typical of an a.netter (although many of us are that nerdy, we just never go out that far  Smile )

Nice breakdown. Could you come work for DH?
 
Cruiser
Posts: 920
Joined: Fri Apr 15, 2005 2:08 am

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 11:39 am

Quoting N770WD (Reply 4):

Great post, but you forgot a few things:

1) ground crews
2) any delay related expenses such as hotels, food vouchers, etc.
3) overselling flights

That is all I can think of, but yes, it is an extremely good listing of trip costs.

James
Leahy on Per Seat Costs: "Have you seen the B-2 fly-by at almost US$1bn a copy? It has only 2 seats!"
 
daron4000
Posts: 604
Joined: Mon Mar 07, 2005 12:17 pm

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 12:21 pm

I thought it was a great breakdown, welcome to my Respected Users list.
 
User avatar
clickhappy
Posts: 9042
Joined: Thu Sep 13, 2001 12:10 pm

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 12:26 pm

Yes, great post! Thank you.
 
TG992
Posts: 2310
Joined: Tue Jan 09, 2001 12:03 pm

RE: Cost Of A Flight For An Airline

Mon Sep 12, 2005 12:37 pm

You may also find these figures from 2003 useful - based on a Sydney-Melbourne return airfare of AUD221.

Airport/Security Taxes plus GST: 54.73
Company Tax: 2.21
Staff: 35.42
Operating Lease Rentals: 33.20
Fuel and Oil: 17.71
Depreciation: 11.07
Marketing: 8.85
Other (Misc): 6.64
Cost of Sales: 6.64
Profit: 4.43

I know it doesn't exactly answer your question, but it gives a good overview of what are the major costs.
-