What are an airline's COGS?

Question

I though that as a service provider airlines shouldn't have much COGS and most of its expenses would be operating ones, but when checked American Airlines' Income Statement I was able to see that it had a lot of cost of revenue expenses but not much operating expenses... I would appreciate any explanation...

Thanks!

Answer 1

NickP is close, but left off the major cost of Goods Sold...the lease costs of the airplane, or if the plane was purchased, the depreciation (spread of costs of plane over its useful life).  All the other costs that he mentions are also COGS.  In order to sell a ticket, they have to provide pilots, fuel, stewards, maintenance, insurance, etc.  all the costs of actually delivering a service for an airline.

Answer 2

Well, let's think. I'm looking at JetBlue, and it seems like they claim all thinkg like:

employees, that staff the plane

fuel

foods

maintenance

any other misc. costs with flying planes