Commercial aviation: air travel economics?

This data-file estimates the economics of a commercial airliner, over the course of its life: i.e., what ticket price must be charged to earn a 10% IRR after covering the capex costs of the plane, fuel costs, crew, maintenance and airport and air traffic charges.

We conclude that the single largest determinants of economics are the utilization and load factor of the plane. Fuel and maintenance are likely to be joint second.

The IEA’s proposal for a $250/ton CO2 price in the developed world would likely increase average ticket prices by 30%. But this would most likely end up as an outright tax on travel, as 2-4x higher CO2 prices again would berequired to incentivize the use of alternative, low carbon aviation fuels.