How much does it actually cost to fly a jet from New York to Miami?

Question

If you add up fuel costs, employee salaries, landing fees, whatever fixed overhead you can think of, how much does an airline require to break even on a flight from New York to Miami (or any other route for which you know the facts)?

Let's say it's a 737, unless you know the facts for some other aircraft.

I just don't understand how they can sell a nine dollar ticket for this run...

Thanks.

Answer 1

The last costs I saw for B-737 was over $10,000 per block hour,

plus fuel. A block hour is the time from cabin door close at departure to opening at destination. This cost was a long time ago-around 1984. Now, with the cost of new aircraft, probably two or three times that, plus fuel costs.

Regards,

Dan

PS I am sure that the $9 is a short-time promotion. $9 won't pay for 2 gallons of fuel.

Answer 2

Look up the term CASM (cost per available seat mile).  That's a measure of the airline's cost to move one seat (whether empty or occupied) one mile.  Generally on the order of 10 or 11 cents, but can be higher or lower depending on airline, aircraft type, and length of flight (since cruise is cheaper than takeoff).

So your answer would be about 11 cents * miles from JFK-MIA * number of seats on a 737.