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Joined: Thu Dec 07, 2006 1:04 am

How To Calculate Cost Of Flying A Passenger?

Thu May 24, 2007 7:46 pm

I am trying to determine the cost to an airline of flying an incremental passenger. Looking through different airlines' annual reports, some cost categories are clearly part of the cost of flying an incremental passenger:
- Commissions/Distribution
- Passenger servicing (e.g., food)

I have two questions:
1) should fuel cost be included? An extra passenger and baggage adds weight, which leads to more fuel consumed, but part of the fuel burn is also tied to takeoff and landing rather than the weight on the airplane, so how much (if any) of the fule cost should I include?
2) Am I missing any big cost categories?

Thank you for your help.