How airlines make money: why profit is just one seat away

Gepubliceerd op 1 februari 2026 om 09:16
How does an airline make profit

Where does the money we pay for a plane ticket actually go? An airline faces many fixed and variable costs, and what remains is often just a few euros per passenger. This means that a single empty seat, a delay, or an unexpected diversion can be enough to turn a flight into a loss.

So how can a €19 ticket keep an airline alive? Below is a clear, structured explanation of where an airline’s money goes, based on typical European short- and medium-haul operations.

Airline cost structure explained

*FUEL: 54/189 seats

(& flight operating costs)

Fuel is the single largest expense for airlines. It includes not only jet fuel itself, but also fuel hedging contracts and additional fuel burned during delays, holding patterns, or diversions. Because fuel prices fluctuate constantly, this is also the most unpredictable cost.

Ground handling

Ground handling covers everything that happens on the ground: check-in, gate operations, baggage loading, pushback, de-icing, and cabin cleaning. These services are often outsourced and must be paid whether the flight is full or not.

*SALARIES: 39/189 seats

Pilots and cabin crew are highly trained professionals whose costs include salaries, overtime, hotels during layovers, and transport. Crew costs are largely fixed and do not decrease when flights are less full.

Technical staff

Aircraft mechanics and engineers ensure planes remain airworthy and safe. These teams perform inspections, repairs, and safety checks both during daily operations and longer maintenance events.

Office and management

Behind every flight is a large organisation handling flight planning, revenue management, operations control, IT, finance, HR, legal, and compliance. These roles are essential to keep the airline running smoothly.

Social charges and training

Airlines also pay for pensions, insurance, uniforms, and continuous training programmes. Pilots and crew must regularly pass simulator checks and medical exams, adding significant recurring costs.

*OWNERSHIP: 28/189 seats

Most aircraft are leased rather than owned. Airlines pay monthly lease payments or loan interest whether the aircraft flies or stays grounded.

Insurance

Airlines carry extensive insurance covering the aircraft itself, passenger liability, and war or terrorism risks.

*TAXES: 23/189 seats

These include passenger taxes, security charges, environmental taxes, and other national or local taxes.

Airports and ATC

Every flight pays to use airports and controlled airspace. These charges include landing and take-off fees, passenger service charges, air traffic control fees, and noise or night surcharges.

*MAINTENANCE: 18/189 seats

(& technical costs)

Aircraft maintenance includes routine line maintenance as well as major scheduled checks. Maintenance is strictly regulated and cannot be postponed, regardless of financial pressure.

Parts and components

Engines, landing gear, and other components require costly overhauls or replacements.

Technical compliance

Airlines must comply with strict aviation regulations, including certifications, airworthiness directives, and avionics software updates. Compliance is mandatory and non-negotiable.

*OTHER: 24/189 seats

Ticket distribution

Selling tickets is not free. Airlines pay booking system fees, travel agent commissions, and credit card processing costs for every ticket sold.

Marketing and branding

Advertising, sponsorships, websites, apps, and loyalty programmes fall under marketing.

Customer service

Call centres, complaint handling, passenger compensation, and hotel or meal vouchers during disruptions are significant operational expenses.

Sustainability and environment

Airlines invest heavily in sustainability through sustainable aviation fuel, carbon offset programmes, and quieter aircraft.

Catering

Meals, drinks, and buy-on-board products come with purchasing, logistics, and waste costs, even when items go unsold.

Cabin and comfort

Seats, inflight entertainment, WiFi contribute to the onboard experience and require continuous investment.

IT

Airlines rely on complex IT systems for reservations, operations, cybersecurity, data storage, and optimisation tools. Without these systems, modern airline operations would collapse.

...

Final takeaway: profit*

Nearly 100% of an airline’s revenue is consumed by costs, leaving only a tiny margin for profit in good years. This is why airlines focus relentlessly on efficiency and additional revenue streams, because in aviation, profit is often just one seat away from loss.

Beyond the revenue from an economy-class ticket, airlines develop additional income streams such as:

  • Carrying cargo in the aircraft hold
  • Selling business class or premium economy tickets
  • Onboard catering and duty-free sales


By strongly focusing on these additional revenue streams, a profit margin that equals just three seats can quickly grow into significantly more.


By: Rico Valkenborgh | February 1st, 2026


Bibliografie

  • Air Transport Action Group. (2023). Aviation: Benefits beyond borders. ATAG.

  • Doganis, R. (2019). Flying off course: Airline economics and marketing (5th ed.). Routledge.

  • IATA. (2022). Airline cost management and profitability. International Air Transport Association.

  • IATA. (2023). Economic performance of the airline industry. International Air Transport Association.

  • ICAO. (2022). ICAO environmental report: Aviation and climate change. International Civil Aviation Organization.
  • OAG Aviation Worldwide. (2023). Airline operational and cost benchmarks. OAG.

  • AirInsights. (2020, February 26). How airlines actually make money. Medium. https://medium.com/@AirInsights/how-airlines-actually-make-money-615eb8aa8d74

  • Airliners.net Forum. (2012, August 5). How do airlines make money?. Airliners.net.
    https://www.airliners.net/forum/viewtopic.php?t=555743

  • ChatGPT. (2026, 17 januari). Gesprek over luchtvaartindustrie, airline-economie en operationele kosten. Gesprek met de gebruiker. OpenAI.

  • Genuine Impact. (2023, June 15). 5 new charts on airline industry. Substack. https://genuineimpact.substack.com/p/5-new-charts-on-airline-industry

How airlines make money: why profit is just one seat away

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