How Airlines Spend Your Airfare

Airfare expenses

Wall Street Journal columnist Scott McCartney reports on the cost breakdown of a hypothetical 100 seat flight.  Assuming the flight was full, how much is spent to cover expenses and how huge of a profit margin is the airline collecting.  Turns out the profit margin is an enormous 1%.  The biggest expense is file, taking 29%.  This despite airlines becoming more fuel efficient – the cost of fuel, as we all can attest to, has gone up considerably in the last 10 years.

Link to the article:

How Airlines Spend Your Airfare – WSJ.com