Air Companies Explained How Plane Ticket Fares Are Formed

We decided to learn more about plane tickets and tell our readers about how the prices of plane tickets are formed. As it turns out, the fares are set according to strict rules and unlike what most people think, they are not just whatever the company wants them to be. At the end of the article, there is a useful bonus: a few tricks that will help you save money on flights.

After reading this article, you’ll see that it’s not as difficult as it seems and you’ll be more prepared to plan your trips. We at Bright Side are convinced that it’s easier than you think. And much cheaper.

Aircraft fuel is one of the most expensive parts of the plane ticket cost. Each plane needs a different amount of fuel, and usually, it’s information that can be found on the website of the air company or the company that constructed the plane. Here is a simple calculation to give you a basic understanding: a direct flight from Moscow to New York is about 4,600 miles and it takes the Airbus 70 tons of aircraft fuel. 70 tons cost around €34,000.

This percentage is made up of several parts. First of all, it includes passenger service on the flight such as food, water, blankets, kind flight attendants, and more. Second of all, storing and transporting the luggage is also considered. Then, you can also include call-centers, websites, statistics, and customer service. Finally, the work with the plane itself: “parking”, express checks, and so on.

This is about insurance and small repairments: painting and routine maintenance of the plane.

This part includes the salaries and bonuses of the air company employees: the pilots of all ranks, flight attendants, and other staff.

Depreciation (amortization) is a gradual decrease in the cost of the plane itself which is caused by its aging. If the plane is property, then these costs are covered by the owner. However, if the plane is rented (this is so-called aviation leasing which is a very common thing) then, it’s paid by the person who is using the plane at the time.

This is the money that air companies for marketing, promotion, taxes, and some other expenses. These costs depend on the situation in the country where the company is from.

This includes meteorological support, tracking of the aircraft during the flight, and payments to the airports.

Aircraft fuel — 26 %

Passenger and luggage service, both in airports and on planes — 26 %

Aircraft service — 16 %

Salaries — 10 %

Depreciation and leasing — 8 %

Advertisement and administrative costs — 5 %

Air navigation fees and, meteorological support — 9 %

Bonus: Tricks that will help you save money when buying plane tickets

Use different aggregators

Choose connection flights

Use the “Sunday Rule”

Fly on the “right” days

Change dates

Sign up for a loyalty program and save miles.

Do you have any lifehacks that you use when buying plane tickets? Share your knowledge and experiences with us in the comment section!

Preview photo credit depositphotos