Fuel replaces labour as largest cost for airlines in 2006

The Centre for Asia Pacific Aviation (CAPA) reports that a recent International air Transport Association (IATA) sample of the financial reports of 45 major global airlines reveals that fuel replaced labour as the largest single cost item for the global airline industry in 2006. This marks the first time ever that fuel costs have outpaced that of labour.

According to the IATA analysis, fuel accounted for 25.5 per cent of total operating costs for carriers in 2006, up from 22.5 per cent in 2005, while labour (including pension) expenses fell from 24.2 per cent in 2005, to 23.3 per cent in 2006.

AviationandAerospace