Are Airport Costs Becoming LESS Important for Airlines?

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Airlines, while not applauding costly airports, might be less sensitive to high airport costs than they once were. Airline Weekly explains why.

When oil is expensive—as it still is, historically speaking—airport costs comprise a smaller percentage of overall costs. No airline will applaud high airport costs, but they indisputably matter less now than they did a decade ago.

For airlines, it’s among their biggest complaints: rising airport costs. Airlines praise airports that keep costs low. And they pan those that, in their view, build expensive facilities that are driven by ego rather than true demand from airlines or their passengers, who ultimately end up paying the bill. The upshot: expensive facilities ultimately mean higher fares and less air service.

Or do they?

This week, Airline Weekly looks at one major airport that is among the most expensive in the U.S… and the fastest growing. How can that be? One explanation found in the cover story: “When oil is expensive—as it still is, historically speaking—airport costs comprise a smaller percentage of overall costs. No airline will applaud high airport costs, but they indisputably matter less now than they did a decade ago.”

To receive a free copy of that issue along with the next three issues free with no obligation, click here: http://airlineweekly.com/trial

Seth Kaplan, Airline Weekly’s managing partner, says the story is just one example of how the publication keeps its subscribers ahead of important but little-noticed airline news trends.

“The idea that costs ‘matter’ less during a cost crisis… That, like so many other counter-intuitive ideas that we explore each week, is why our readers are uniquely informed,” Kaplan said.

The current issue also contains another great example of why readers love Airline Weekly: a ranking, from first to worst, of 70 of the world’s airlines by profit margin for the first half of 2010. It too is available free: http://airlineweekly.com/trial

About Airline Weekly:

Airline Weekly is a subscriber-supported publication, paid for by readers who want a more interesting, more valuable read about the airline business. Each Monday, Airline Weekly reports who's flying where, new marketing approaches, fleet, finance and key airline and airport data. Airline Weekly is produced by Airline Weekly Corp., an independent company of journalists and airline industry professionals.

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Seth Kaplan

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