Get this delivered to your inbox, and more info about our products and services. British Airways does the same with its Reward Flight Saver tickets, charging cash amounts lower than total UK taxes. This can make forward planning and accounting more straightforward and provide some protection, but ultimately prices will rise when oil prices go up. For our 777-300ER, this would be $645. facts. CHICAGO (Reuters) -United Airlines Holdings on Wednesday posted a lower-than-expected quarterly profit, its first without U.S. aid since the pandemic began, as booming travel demand failed to offset higher operating costs, sparking a sell-off in its shares. Currently, you are using a shared account. To use individual functions (e.g., mark statistics as favourites, set This article looks at some of these costs and considers what airlines pay to ensure you get in the air. As well as landing fees, there are additional government taxes, of course. How much airlines handle themselves and how much is outsourced vary between airlines and locations. Data is a real-time snapshot *Data is delayed at least 15 minutes. This statistic is not included in your account. Photo: Airbus. The ideal entry-level account for individual users. Typical accounting measures suggest a depreciation cost of 4% per year for jet aircraft. statistic alerts) please log in with your personal account. Finnair also makes good use of overseas bases, particularly for Asian flights, although this practice has generally shifted with the downtime in international traffic during COVID. We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. They include the costs of owning and renting aircraft (including depreciation and amortization), renting terminal facilities and gates, professional services (advertising, legal), landing fees, maintenance as well as transport-related (indirect services). Like all fixed costs, there is a cost that needs to be attributed to each flight made. It calculates the following per hour (block hour, so the total time from gate to gate rather than just airborne time) operating costs for all crew: So, as a guide, our seven-hour 777 flight from London to New York would have a staff cost of around $16,500. If you are an admin, please authenticate by logging in again. Before we look at the costs explicitly associated with operating a flight, we should briefly discuss the fixed costs faced by airlines. We now look at the costs of operating the actual flights. There has been significant improvement in aircraft efficiency in recent years, and of course, twin-engine aircraft are now much more capable. Sign up for free newsletters and get more CNBC delivered to your inbox. In 2020, the fee was $6.95 per thousand pounds of maximum gross weight. 
The price for insuring aircraft will depend more on the fleet size than the number of flights. The industry average was 33 passenger-kilometers per liter of fuel burn. Photo: Vincenzo Pace I Simple Flying, The 777-8 will be worth millions of dollars less every year. American carriers are enjoying the strongest summer travel season in three years as more people resume regular activities including vacations. This is a complicated area that shifts and changes a great deal between regions and over time. Airlines, though, cant always just pay a fee and simply come trundling through the airspace of their choice they need permission as well. Maintenance costs. Got a confidential news tip? Going forward, we will likely see even smaller (and more efficient) twin-engine aircraft on longer routes. However, at times, as we have seen lately with the gone-too-soon Airbus A380s, airlines do not always keep planes around for that long, and there may be no one who wants them when they let them go. All quotes delayed a minimum of 15 minutes. For comparison, a transcontinental flight from New York to Los Angeles would use $10,757 of fuel. You only have access to basic statistics. Profit from the additional features of your individual account.
%%EOF Others are longer-term and more based on the planned schedule. This study attempted to quantify the total operating cost of various aircraft types. This material (including graphics) can freely be used for educational purposes such as classroom presentations in universities and colleges. Measures how much net income or profit is generated as a percentage of revenue. United reported its first quarterly profit $329 million since the Covid-19 pandemic began without the help of federal payroll aid, which expired almost a year ago. Airlines need to pay fees to the countries whose airspace they cross through. UAL Corporation agreed to change its name to United Continental Holdings in May 2010, when an agreement was reached between United and Continental Airlines where United would acquire Continental. A transcontinental flight between New York and Los Angeles costs about 12 cents per seat mile to operate a B-757, which has 188 seats. Meanwhile, the improvement in efficiency is best seen by comparing fuel burn per seat. Many airlines operate multiple crew bases to help with this. Next year, United said it plans to expand flying no more than 8% over 2019, down from an earlier forecast for 20% growth. Any other uses, such as conference presentations, commercial training progams, news web sites or consulting reports, are FORBIDDEN. Once completely combined, United became the world's largest airline, as measured by revenue passenger miles. According to the IATA jet fuel price monitor, fuel prices have more than doubled over the past year, much due to Russia's war in Ukraine. Additionally, UAH's United is the largest U.S. carrier to the People's Republic of China and maintains a large operation throughout Asia. United Airlines on the move after earnings. We have a plan for your needs. Of course, some are directly related to each flight and would not be incurred if the flight did not operate. Japan Airlines To Shift Thousands Of Employees To Subsidiary Businesses, Delta Adds The Airbus A321neo To New York JFK-Seattle Flights, Its 16th European Passenger Destination: Ethiopian Airlines To Serve Zrich This Winter, Close Call: The Lightning Strike That Almost Downed A Loganair Turboprop In 2014, Qatar Airways CEO: We Will Be The First Boeing 777X Recipient. United will discuss the results on a call with analysts and investors on Thursday morning. Our Standards: The Thomson Reuters Trust Principles. Out of interest, for a larger narrowbody (over 160 seats), this drops to variable costs of $4,096 and total costs of $4,733. Salaries for pilots can vary even within a country. Jean-Paul Rodrigue (2020), New York: Routledge, 456 pages. For most heavy widebodies, this would be 5,737 ($6,982) per landing. and over 1Mio. The fuel-efficient Airbus A350 and Boeing 787 were significantly above this, at over 40 passenger-kilometers per liter. Instead of routing over Portugal, Spain, and France, it switched to an oceanic crossing and entered UK airspace over Cornwall. "United Airlines' Operating Expenses from 2010 to 2021 (in Billion U.S. To put this in context, the list price (although this is hardly what an airline or lessor ends up paying, it is more like a starting point for negotiations) for a new 777-8 aircraft is $410.2 million, so depreciation could be as much as $16.4 million per year. Photo: Lukas Souza | Simple Flying. Crew bases and rotations are also a significant cost factor, especially with long-haul flights. "Industry-wide operational challenges that limit the system's capacity, record fuel prices and the increasing possibility of a global recession are each real challenges that we are already addressing.". These are based on aircraft size, as well as noise category. Europe's rates are more complicated. Airlines have very high fixed costs of operating flights, and there is actually not all that much money in the business compared to other industries. A paid subscription is required for full access. A Division of NBCUniversal. You need a Single Account for unlimited access. Copyright 1998-2022, Dr. Jean-Paul Rodrigue, Dept. hb```B!1#% IA`wC!Us#vt*oq v>F.~4f8{QSjPnjo8'lz3M'm8kI&QzVT$l;8:::!Dut40h4([404p @ f!@s4/= 0 All Rights Reserved. The Points Guy looked in detail at total fuel costs in late 2019, based on data from Airlines for America. Chart. United Airlines on Wednesday notched a key profit milestone in its pandemic recovery, but said it will scale back its growth plans through 2023. This not only affects cost but provides local crew for better passenger service and backup in case of staff problems.
It said it will scale back its growth plans through 2023. "United Airlines' operating expenses from 2010 to 2021 (in billion U.S. dollars) ." Cabin crew likewise can earn different wages depending on their contract terms or location base. hkH~i}HIkhrBx$K}9"V;k~RkAZ$I$EvT 09x "l(H)t5?ED &B a Photo: Getty Images. You can only download this statistic as a Premium user. Corporate solution including all features. However, it intends to keep its capacity below the pre-pandemic level in the current and fourth quarters to avoid stretching its resources thin. The maximum take-off weight (MTOW) of a 777-300ER is 775,000 pounds. The Federal Aviation Administration sets rates in the US. Rival Delta Air Lines last week warned that cost pressures would remain elevated through the year as it battles operational challenges. Please do not hesitate to contact me. Labor represents about 75% of all non-fixed costs of airline operations. Operating expenses have risen along with fuel costs. United Airlines' operating expenses from 2010 to 2021 (in billion U.S. dollars) [Graph]. Please create an employee account to be able to mark statistics as favorites. His research interests cover transportation and economics as they relate to logistics and global freight distribution. Photo: Airbus, London, Rome & Amsterdam: US-Bangla Airlines Eyes Long-Haul Flights To Europe Next Year, The Cost Of Flying: What Airlines Have To Pay To Get You In The Air, Air Passenger Duty (APD) on top of other taxes, Deadly Microburst: The Story Of USAir Flight 1016, Rolls-Royce And Hyundai Sign MOU For Hydrogen And Electric AAM Propulsion, Virgin Australia Deepens Qatar Airways Partnership At Etihad's Expense, The Simple Flying Podcast Episode 127: Simple Flying Meets Derek Nseko To Discuss African Aviation & AviaDev Africa, Snapshot: A Day In The Life Of Turkish Airlines' Istanbul Airport Operations. Source: FAA, Glassdoor, IATA, The Points Guy, ICCT, The Wall Street Journal, Airliners.net. An interesting study from the International Council on Clean Transportation (ICCT) looked at this in 2019 for transatlantic operators. United is a founding member of the Star Alliance. The link between ticket prices and airline profitability is very complex. Shares were down nearly 7% in after-hours trading after the airline reported results. As part of this, it took advantage of lower labor costs outside its main base in Norway. Directly accessible data for 170 industries from 50 countries Would you like to share any comments on airlines' costs and fees? Insurance costs. As such, consider this analysis a starting point to gain a general overview rather than an exhaustive guide to aviation economics. United said it expects unit costs excluding fuel to remain elevated through this year, up 16% to 17% in the third quarter and up about 14% in the fourth from three years earlier. The rates for JFK (and other New York airports) are published by the Port Authority of New York. Aircraft that can be converted to cargo carriers stand a greater chance of transferring onto the secondhand market. (NASDAQ:UAL), United Airlines (NASDAQ:UAL) Shares Gap Down After Earnings Miss. RivalairlinesDelta, Southwest, JetBlue and others, have also trimmed their schedules recently. Fees vary significantly between airports and consider different factors, including aircraft type and weight, landing time, and sometimes emissions and noise. How Would The A321XLR Fit In LATAM's Fleet? United reported one profitable pandemic quarter, through September 2021, with federal government aid. Advanced users can use our Python/R/Matlab packages. %PDF-1.5 %
These likewise vary hugely between countries and airports and change regularly. Reservation and booking costs. Quick Analysis with our professional Research Service: Toplists & Rankings: Best Employers Portal. This is an interesting area for low-cost carriers, as many cut costs here by only selling flights through their websites. Accessed July 22, 2022. https://www.statista.com/statistics/978677/operating-expenses-united-airlines/, UCH. Labor is the most important operating cost of an airline (32.3%), followed by fuel (17.7%). Its long-haul operations had a complex structure, with subsidiaries in several countries. Dr. Jean-Paul Rodrigue, Professor of Geography at Hofstra University. Let's take a look at what an airline's most significant operating expenses are. Major expenses include: Aircraft depreciation and rental costs. Values prior to 2019 were taken from previous editions.
Specific topics include maritime transport systems, global supply chains, gateways and transport corridors. International traffic and corporate travel demand are also on a rebound, making for a profitable second-quarter for most of the major carriers. The payments are much more complicated for a complex route crossing several countries. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Some other relevant and interesting cost areas will be highlighted. Learn more about how Statista can support your business. There is some discussion that this may be removed, but it is far from certain. The impact of rising prices is mitigated to some extent by more efficient aircraft. With eight years experience in publishing and citations in publications such as CNN, Linnea brings a deep understanding of politics and future aviation tech to her stories. For a good idea of what this costs in terms of operating a flight, we will look at the FAA analysis numbers. For a flight just over the US or within Europe (which is centralized under Eurocontrol), this will be a single payment based on the aircraft type and length of the flight. It is the holding company for both United Airlines and Continental Airlines. Airlines pay a fee to land at any airport and use the required facilities there. In most cases, these are incorporated into the price paid for the ticket and then passed from the airline to the relevant government bodies. We saw this, for example, when Qatar Airways was blocked from several Gulf countries' airspace from 2017 to 2021 and once again under bans on overflying Russia or western countries for Russian airlines. endstream endobj 5757 0 obj <>/Metadata 118 0 R/Pages 5754 0 R/StructTreeRoot 176 0 R/Type/Catalog>> endobj 5758 0 obj <>/MediaBox[0 0 612 792]/Parent 5754 0 R/Resources<>/Font<>/ProcSet[/PDF/Text]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 5759 0 obj <>stream On top of this, there is a system of heavier A, B, C, and D checks. Landing fees at airports depend on a number of variables. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Insights into the world's most important technology markets, Health Market Outlook Unfortunately, this was not enough to make the Norwegian long-haul low-cost experiment successful. Direct access to our data from your apps using any programing language. The number of cabin crew follows strict regulations, with a minimum number for each aircraft type. Controladora Vuela Compania De Aviacion, S.A.B De C.V (VLRS), United Airlines Holdings Inc Operating Expenses 2010-2022 | UAL, United Airlines Holdings Inc operating expenses for the quarter ending March 31, 2022 were, United Airlines Holdings Inc operating expenses for the twelve months ending March 31, 2022 were, United Airlines Holdings Inc annual operating expenses for 2021 were, United Airlines Holdings Inc annual operating expenses for 2020 were, United Airlines Holdings Inc annual operating expenses for 2019 were. The UK has some of the highest such taxes, with its Air Passenger Duty (APD) on top of other taxes. "It's nice to return to profitability but we must confront three risks that could grow over the next 6-18 months," United CEO Scott Kirby said in an earnings release. But, of course, to maintain an airworthy fleet, maintenance costs are inevitable. The Wall Street Journal, for example, quoted the case of a British Airways re-route over Europe for a London to So Paulo flight that could save the airline around 3,000 ($3,650). {X;6\> ~f fj-' iFV\W l Access to this and all other statistics on 80,000 topics from, Show sources information And a parking charge of 61.13 ($74.40) per 15 minutes (after 90 minutes) for widebody aircraft.
hbbd```b``N Dl0D2kT0&I @N>#7dF:^0 O< It also helps explain the growing importance of ancillary revenues for budget carriers. The Chicago-basedairlineestimated its third-quarter capacity would be 85% of the same quarter of 2019 and fourth-quarter capacity would be 90% restored compared with three years ago, before the pandemic hamstrung travel a relatively conservative plan as it seeks to trim flying in order to become more reliable. Reported on 4/20/22. The companys shares were down 6.5% at $38.95 in extended trading. New, Insights into the worlds most important health markets, Figures and insights about the advertising and media world, Everything you need to know about the industry development. Industry-specific and extensively researched technical data (partially from exclusive partnerships). Back in the 1970s, long-haul flying was the domain of heavy, four-engine airliners. Consider this next time you are looking at very low fares with low-cost airlines. To effect the acquisition, Continental shareholders received 1.05 shares of UAL stock for each Continental share; at the time of closing, it was estimated that United shareholders owned 55% of the merged entity and Continental shareholders owned 45%. An airline may not keep an aircraft this long, of course, but the remaining value is then reflected in the secondhand value of the aircraft. Register in seconds and access exclusive features. Some discussion on Airliners.net puts a standard ground turnaround charge for a 737 aircraft at $1,000 to $2,000. Depending on aircraft type and exact routing, there would obviously be variations, but it provides a pretty good baseline. February 18, 2022. Please check your download folder. This could be considered as a cost that is either fixed or dependent on flights. While the company anticipates the economy will slow in the near to medium term, the continuing pandemic recovery is more than offsetting economic headwinds leading to expected revenue and earnings acceleration in the third quarter, United said. The new Airbus A321XLR promises much in this area and is already proving a popular choice for airlines. To cover its costs, an airline must have, on average, 65% of its seats occupied (passenger load factor), a share that has increased in since deregulation. The total amount of income generated by the sale of goods or services related to the company's primary operations, Represents the total incurred expenses through normal operations, Companys earnings for a period net of operating costs, taxes, and interest. According to Jean-Paul Rodrigue in his book The Geography of Transport Systems, staff are fuel costs are by far the most significant expenses for an airline. Statista. 2022 CNBC LLC. Based in Amsterdam, Netherlands. Or do you know any more details or examples of actual costs we would love to update with more accurate estimates! Airlines have reported strong demand as well as high costs for fuel and other expenses. Number of cars sold in the U.S. 1951-2021, Battery electric vehicles in use worldwide 2016-2021, Gas prices in the United States 1990-2021, Automotive industry worldwide - statistics & facts, Motorcycles in the United States - statistics & facts, Research expert covering mobility and logistics, Profit from additional features with an Employee Account. Unit revenues in the second quarter surged 24% over 2019 thanks to strong travel demand, even at sky-high fares, while unit costs, excluding fuel, rose 17% over the April-June period of three years ago.