Wages, employee benefits (e.g., annuity payments, educational, medical, recreational and retirement programs) and payroll taxes (e.g., FICA, state and federal unemployment insurance). General management, flight personnel, maintenance labor, and aircraft and traffic handling personnel are all included in the calculation of labor costs.
Cost of total fuel used in flight operations, excluding taxes.
The cost of aircraft rentals, depreciation and amortization of flight equipment, including airframes and parts, aircraft engine and parts, capital leases and other flight equipment.
Principally, the total cost of airport terminal rents. Non-aircraft rents and ownership also includes the cost of hangars, ground service/support equipment (GSE), storage and distribution equipment ,and communication and meteorological equipment.
The cost of legal fees and expenses (e.g., attorney fees, retainer fees, witness expenses, legal forms, litigation costs), professional and technical fees and expenses (e.g., engineering and appraisal fees, consultants, market and traffic surveys, laboratory costs), as well as general services purchased outside (e.g., aircraft and general interchange service charges).
The cost of purchasing beverages and food, commissary supplies and outside catering charges.
The cost of fees paid by the airlines to airports for runway and airport maintenance.
The cost of maintaining and purchasing materials for airframes, aircraft engines, ground property and equipment (excluding labor costs). Also includes the costs of maintaining a shop and servicing supplies (e.g., automotive, electrical, plumbing, sheet metal, small tools, glass and glass products, cleaning compounds).
The cost of flight equipment insurance, sometimes referred to as hull insurance.
The cost of insurance unrelated to the hull itself. This category is broken down by two categories: general insurance (i.e., buildings and contents, materials and supplies, third party liability, passenger baggage and personal property) and traffic liability insurance (i.e., passenger baggage and personal property, cargo liability and provisions for self-insurance).
The costs paid to passenger travel agencies for services.
The total cost of equipment and intercommunication rental and installation charges, telephone and teletype equipment, telegraph and cable message charges and navigation facility charges.
Includes the cost of producing tariffs, schedules, timetables and other promotional and publicity expenses (e.g., television, radio, entertaininment, photography, graphics).
The cost of light, heat, power and water, stationary, printing (e.g., labelss, small signs, ticket stock, paper products, company manuals), shipping and mailing supplies and other office supplies as well as cleaning compounds, safety, electrical, engineering, drafting, blue prints and photographic supplies.
As defined by DOT, transport-related expenses are expenses incurred for providing air transportation facilities associated with the performance of service which emanate from and are incidental to air transportation services performed by the carrier. Following are some specific examples:
- ABC Airlines issues tickets for flights operated by regional partner ABC Express. It pays ABC Express a fee to fly the code-share routes on its behalf. ABC Express reports the fee income as passenger revenue, to match the associated traffic, capacity and operating expenses. ABC Airlines reports the fare collected as transport-related revenue and reports the fee it paid to ABC Express as transport-related expense.
- ABC Airlines performs maintenance for XYZ airlines. ABC Airlines reports the cost of labor, parts and materials for this in-sourced maintenance as transport-related expense.
- ABC Airlines sells liquor and food on its flights. The amount that ABC Airlines paid for the liquor and food is reported as transport-related expense.
- ABC Airlines operates a gift shop. The cost of running that gift shop is considered transport-related expense.
Includes the cost of miscellaneous expenses such as personnel expense, outside flight equipment, excess of losses over insurance recoveries, interrupted trips expense, memberships, corporate and fiscal expenses, uncollectible accounts, clearance customs and duties.
The total interest paid on long term debt, capital and other interest expenses. Included in this worksheet is the cost associated with average book debt outstanding and estimated off-balance sheet debt.
A weighted average of all components, including interest expense.