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

“Commoner” on Frontier to Denver

I travel mostly on American Airlines, but this time I am on Frontier to go to Denver, mainly because they had a really good ticket price. The airline is fine but got me to thinking about the drawbacks of loyalty programs, which is basically that I thing I’ve been spoiled by Gold treatment on AA, so traveling as a “commoner” on other airlines is just not fun.

That is, of course the point of loyalty programs… incentive to keep traveling with the same airline.

Posted from Dallas, Texas, United States.