Ever wondered what it costs the airlines to transport you for your Hawaii vacation? In a word, it’s a lot.
This is one tough industry, and just thinking about it is enough for me to know that I would not want to be in that business. This gives me a lot of respect for our Hawaii airlines, and most especially to Hawaiian, Alaska and Allegiant.
The expenses below are only estimates.
It is estimated that fuel represents 28% of the airline’s operating expense.
Just to give you an idea in terms of per person cost, based on today’s $85/barrel oil and 80% of seats occupied (which is low), estimated fuel cost per passenger round-trip between the west coast and Hawaii:
- Boeing 767: $209
- Boeing 757: $176
- Boeing 737: $160
- Labor 23%
- Aircraft acquisition 6%
- Professional services 7%
- Food/beverage 1%
- Landing fees 2%
- Maintenance materials 2%
- Insurance 1%
- Commissions 1%
- Communications 1%
- Advertising/promotion 1%
- Utilities/office supplies 1%
- Miscellaneous (transport-Related and other Expenses) 23%
Some of the data above was obtained from Airlines for America, formerly Air Transport Association.
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