Running an airline is a horrible way to make money
Airfare is expensive but new information reveals how little airlines make from each passenger on an average flight.
The information comes from US Airways who created a hypothetical flight of 100 passengers to determine where airfare goes. Each passenger paid the average $146 fare for a domestic flight ($292 round-trip) and $18 each in fees and add-ons. The results are startling:
- Airfare of 29 passengers pays for fuel to make the trip
- Airfare of 20 passengers pays salaries
- Airfare of 14 passengers pays the collective federal taxes paid by passengers\
- Airfare of 11 passengers pays for maintenance costs
- Airfare of 9 passengers covers ”other” category—everything from catering (the soft drink you get free on most, but not all, carriers) to compensating passengers for bumping them from flights and paying to deliver or replace lost baggage.
- Airfare of 1 passenger = airline profit
Operating an airline is not a lucrative business.